, Indonesia

Bank Rakyat Indonesia profits from double-digit share price gains

Share price has risen 10%YTD which could translate to a 2019 net profit of $2.46b.

With Bank Rakyat Indonesia’s (BBRI) share price outperforming the Jakarta Stock Exchange Composite Index at 10% YTD compared to the latter’s 5% gains and the country’s other big banks, the bank could easily meet and even exceed its net profit target of $2.51b (RP35.6t) in 2019, according to UOB Kay Hian. 

Also read: Bank Rakyat Indonesia profit up $2.32b in 2018

The 10% price increase suggests a net profit of $2.46b (RP34.9t), equivalent to a $3.31b (RP46.9t) increase in market cap. “This implies a $1.44b (Rp20.4t) increase in its book value, based on its three-month average P/B of 2.3x. Assuming BBRI maintains a dividend payout ratio of 45%, the implied net profit is $2.46b (Rp34.9t) for 2019. This is nearly 98% of management’s guidance of $2.51b (Rp35.6t) net profit for the year. This is also 94.4% of our forecast of Rp37t,” analyst Raphon Prima said in a report.

The bank’s loans are also set to grow at a stable 14% in 2019 amidst robust expansion in micro and consumer loans which contributed to 52% of total loans in the previous year.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!