BRI Receives Analysts Buy Recommendation as MSMEs Financing Strategy Drives Growth
Supported by an extensive branch network and empowerment initiatives, BRI has achieved an impressive Return on Equity (ROE) and maintained a Net Interest Margin (NIM) consistently above 7%, exceeding the industry average of around 6%. "Therefore, we expect the ROE to be maintained above 20%, relatively in line with the average of other major banks," quoted from
BRI's ultra-micro portfolio through Pengadaian and PNM is on a growth trajectory, with this segment achieving higher margins and outpacing typical bank credit growth. "The total asset contribution of these subsidiaries has reached almost 10% of the total in the first quarter of 2024 (compared to 6% in 2020), while the contribution to net income has also grown to 14% of the total (compared to 10% in 2022)," he wrote.
Edward acknowledges challenges in managing BRI's asset quality but expects moderate revenue growth of 5% to 10% YoY in 2024 and 2025. He expects BBRI to maintain above-average NIM and growth due to its dominance in microloans. "Adequate loan loss coverage and a strong capital position will help the bank weather near-term challenges," he added. Therefore,
Similarly, Jayden Vantarakis of Macquarie has a target price of
BRI's Finance Director
For more information on BRI, please visit www.bri.co.id
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