KONTAN.CO.ID-JAKARTA. Shares of PT Bank Rakyat Indonesia Tbk or the issuer with the code BBRI have once again set a record high in the history of trading on the Indonesia Stock Exchange.

At the close of trading on Monday (12/2), BBRI shares were recorded to have increased by 2.99% and touched their highest level at Rp 6,025 per share with a market capitalization reaching Rp 913.14 trillion.

In relation to this, BRI's President Director Sunarso revealed that the performance of BBRI shares, which once again broke the highest record in history, is a reflection of impressive financial performance.

“This is an appreciation from shareholders for the company's continued positive performance until the end of December 2023,” said Sunarso in a press release, Monday (12/2).

Sunarso revealed that on a consolidated basis, the company's assets grew 5.3% yoy to Rp 1,965.0 trillion, and booked a profit of Rp 60.4 trillion or grew 17.5% year on year (yoy).

From the intermediation function side, until the end of December 2023, BRI managed to push credit distribution to grow 11.2% yoy to Rp 1,266.4 trillion. This achievement is recorded higher than the national banking industry's credit distribution of 10.4% yoy throughout 2023.

From the Third Party Funds (DPK) side, until the end of December 2023 BRI managed to collect DPK amounting to Rp 1,358.3 trillion or grew 3.9% yoy.

This achievement is also better than the national banking industry's DPK which grew 3.8% yoy at the end of December 2023. BRI's DPK collection is still dominated by cheap funds (CASA) with a percentage reaching 64.4% or equivalent to Rp874.1 trillion.

Sunarso affirmed that the majority of the company's profits will be returned to shareholders through dividend distribution.

"The majority of BRI's profits eventually return to the state as the majority shareholder to be used for the benefit of the people through various government programs," added Sunarso.

Previously, from the 2022 fiscal year profit, BRI's dividend which is part of the state with at least 53.19% shares or worth Rp 23.23 trillion, has been deposited into the State General Cash Account (KUN) last year.

The positive performance of BBRI shares is predicted to continue.

Quoting research from Nico Laurens, Panin Securities analyst, the positive annual performance is driven by credit growth that managed to be above the industry, increasing NIM, and improving cost to income ratio. 

“We see positive for BRI, driven by; (1) credit growth room, especially for high yield segments such as Kupedes, (2) digital acceleration will strengthen the company's lending and funding, and (3) stable NIM,” wrote Panin Securities research.

In line, the consensus of analysts compiled by Bloomberg involving 35 analysts resulted in a target price for BBRI shares at Rp6,575.09 per share in the next 12 months. With 34 analysts recommending buy for BBRI shares.

Most recently, Budi Rustanto, OCBC Securities analyst, gave a Buy recommendation on BBRI shares with a target price that could reach Rp6,500 per share. Following Jayden Vantarakis, Macquarie analyst gave a buy recommendation with a target price reaching Rp 7,100 per share.

Editor: Khomarul Hidayat