Bank Rakyat Indonesia (BBRI) Q4 2023 earnings summary

Executive summary

• FY23 net income rose 17.5% to Rp60,425,048m from Rp51,408,207m; ROE increased to 19.95% from 17.63%.

• PPOP grew 16.7% to IDR106,508bn, supported by higher NIM, loan growth and recoveries of written-off assets.

• Total assets reached Rp1,965,007,030m at Dec. 31, 2023; gross loans were Rp1,197,752,706m.

• FY23 consolidated financial statements received an unmodified audit opinion.

Financial highlights

• Net interest and sharia income rose to Rp135,183,487m from Rp124,597,073m; other operating income increased 16.6% to IDR45,626bn.

• Operating income was Rp76,828,737m vs Rp64,306,037m; income before tax was Rp76,429,712m vs Rp64,596,701m.

• Consolidated operating expenses rose 3.3% YoY to IDR76,782bn, while CIR improved to 41.89% from 44.87%.

• Customer deposits increased to Rp1,358,328,761m from Rp1,307,884,013m; gross loans rose to Rp1,197,752,706m from Rp1,079,274,819m.

• Basic and diluted EPS were Rp398 vs Rp338 in FY22; total comprehensive income was Rp61,053,659m vs Rp48,569,183m.

Outlook and guidance

• FY24 guidance: loan growth 11%-12%, NIM 7.9%-8.0%, credit cost 2.2%-2.3%, and NPL 2.7%-2.9%.

• FY24 consolidated CIR guidance is 41%-42%; FY23 actual of 41.89% was in line with guidance.

• Priorities include MSME and ultra-micro lending, selective lending to resilient sectors, strengthening CASA and capital, and continued digitalization.

• 2024 ECL baseline assumptions included GDP growth of 5.37%, consumption growth of 5.11% and investment growth of 6.79%.