Bank Rakyat Indonesia ([%nWyi%] IJ, BUY, TP: IDR5,000)
2Q19 EPS Grew 6% On Higher CoC, But Also NIM

Result Review
Maintain BUY with IDR5,000 TP, 15% upside plus c.2% yield. 2Q19 earnings were IDR7.96trn (-2.8% QoQ, +6% YoY) bringing 1H19 earnings to IDR16.16trn (+8.2% YoY), achieving only 43%/44% of RHB/Street FY19F; slightly below expectations (1H18:-46%). This was from rising interest expenses and credit cost. Nonetheless, we maintain BUY as we believe $BRI – our sector Top Pick – is among the biggest beneficiaries of dovish rate sentiment (bottoming NIM, peaking CoF), backed with new digital initiatives to improve efficiency.

Analysts: Henry Wibowo, Andre Benas, Ghibran Al Imran

Bank Rakyat Indonesia ($BBRI IJ, BUY, TP: IDR5,000)
2Q19 EPS Grew 6% On Higher CoC, But Also NIM

Result Review
Maintain BUY with IDR5,000 TP, 15% upside plus c.2% yield. 2Q19 earnings were IDR7.96trn (-2.8% QoQ, +6% YoY) bringing 1H19 earnings to IDR16.16trn (+8.2% YoY), achieving only 43%/44% of RHB/Street FY19F; slightly below expectations (1H18:-46%). This was from rising interest expenses and credit cost. Nonetheless, we maintain BUY as we believe $BRI – our sector Top Pick – is among the biggest beneficiaries of dovish rate sentiment (bottoming NIM, peaking CoF), backed with new digital initiatives to improve efficiency.

Analysts: Henry Wibowo, Andre Benas, Ghibran Al Imran