BRI Receives Analysts Buy Recommendation as MSMEs Financing Strategy Drives Growth
![Jakarta (06/03)- BRI's MSME Financing Strategy Spurs Growth, Receives 'Buy' Recommendation from Analysts. Jakarta (06/03)- BRI's MSME Financing Strategy Spurs Growth, Receives 'Buy' Recommendation from Analysts.](https://mma.prnewswire.com/media/2428162/06_BRI_Receives_Analysts_Buy_Recommendation_as_MSMEs_Financing_Strategy_Drives_Growth.jpg)
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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