Bank Syariah Indonesia (BRIS): A Stellar Performer in 2024
Bank Syariah Indonesia (BRIS), Indonesia’s largest syariah-compliant bank, achieved remarkable financial growth in 2024, surpassing expectations. The bank’s net profit grew by 22% year-on-year to Rp7.0 trillion, exceeding both UOB Kay Hian’s and market expectations by 4% and 2%, respectively. This growth was primarily driven by a 15.9% financing growth and an impressive 32.6% increase in non-interest income.
Performance Highlights
- Gold financing saw an extraordinary year-on-year growth of 78%, emerging as a key driver of financing growth. Payroll financing also rose by 16.9%, contributing to a 16.3% increase in the consumer segment, which now accounts for 54.5% of total loans.
- Total deposits grew by 11.5%, bringing the loan-to-deposit ratio (LDR) to 85%. The Wadiah accounts, which offer a 0% interest rate, experienced a 9.7% increase and now make up 22% of total deposits.
- Net interest margin (NIM) stood at 5.66% in 2024, slightly down by 16 basis points year-on-year, due to higher rates and tighter liquidity. However, on a quarterly basis, NIM improved due to stronger loan yields driven by robust gold financing.
- Non-interest income grew by 32.6% to Rp5.5 trillion, accounting for 24% of total operating income (up from 20% in 2023). The fee and commission income from e-channel and card businesses increased by 24.9%, while income from gold pawning rose by 26.2%.
- The cost-to-income ratio (CIR) stood at 50.9%, reflecting a 15.2% increase in operating expenses due to network and infrastructure expansion, including IT-related investments.
2025 and Beyond
Looking ahead, BRIS plans to focus on high-yield products like gold financing and Wadiah accounts to manage its cost of funds (CoF). The bank is also set to receive its bullion bank license in the first quarter of 2025, which is expected to boost fee income. With strong asset quality and manageable credit costs, BRIS aims for a 15.8% net profit growth in 2025.
Recommendation: The report maintains a “BUY” recommendation with a target price of Rp3,450, up slightly from the previous target of Rp3,400. This target is based on a fair P/B ratio of 3.1x 2025F, supported by strong earnings growth and ROE improvement.
Bank Central Asia (BBCA): A Promising Technical Buy
Bank Central Asia (BBCA), one of Indonesia’s largest banks, has shown strong technical indicators for potential short-term gains. The stock closed significantly higher, forming a long-body bullish candlestick, signaling a robust rebound. This positions the stock for more rallies to test key resistance levels.
Technical Analysis
- Resistance Levels: Rp9,250 and Rp9,750
- Support Levels: Rp9,150 and Rp8,825
- Stop-Loss: Rp8,800
The Relative Strength Index (RSI) is sloping upwards, indicating a bullish momentum, while the MACD shows a bearish crossover. The stock is recommended for a technical buy at Rp9,325, with a target price of Rp9,750 and an approximate timeframe of 2-4 weeks.
Recommendation: The institutional research team at PT UOB Kay Hian Sekuritas has a fundamental “BUY” recommendation for BBCA with a target price of Rp12,000.
Astra International (ASII): Positioned for Potential Gains
Astra International (ASII), a leading diversified conglomerate, is also showing favorable technical indicators. The stock closed higher with a neutral candlestick, rebounding from its recent lows, suggesting potential for further rallies.
Technical Analysis
- Resistance Levels: Rp4,720 and Rp4,850
- Support Levels: Rp4,520 and Rp4,450
- Stop-Loss: Rp4,510
The RSI is trending upwards, moving away from the oversold zone, while the MACD shows a bearish crossover. Investors are advised to buy at Rp4,650 and take profit at Rp4,850 within a 2-4 week timeframe.
Recommendation: The institutional research team maintains a fundamental “BUY” recommendation for ASII with a target price of Rp6,000.
