The following is a summary of the PT Bank Rakyat Indonesia (Persero) Tbk (BKRKY) Q3 2024 Earnings Call Transcript:
Financial Performance:
PT Bank Rakyat Indonesia reported a 2% increase in net profit reaching IDR45.1 trillion for the nine months of 2024.
Net interest margin remained strong at 7.8% in Q3 2024, indicating robust earnings from their core lending operations.
The pre-provision operating profit (PPOF) witnessed a significant quarter-on-quarter increase of 15.9%, standing at IDR87.5 trillion, driven by rising non-interest income and positive operating leverage.Their Return on Equity (ROE) improved slightly, marking an increment from the same period the previous year, highlighting enhanced profitability and efficiency.
Business Progress:
PT Bank Rakyat Indonesia is maintaining strong loan growth, with a cumulative rate increase of 8.2% leading to a consolidated loan figure of IDR133.4 trillion.
The microloan segment saw a decrease due to stringent collection and scoring standards, indicating a focus on asset quality.
They have experienced a significant increase in digital and CASA deposits, with CASA deposits alone increasing by 6.5%, contributing to an improved CASA ratio of 64.2%.
Opportunities:
Given the stable macroeconomic conditions and projected GDP growth, PT Bank Rakyat Indonesia is likely witnessing opportunities in expanding operations and profitability amid economic recovery.
Risks:
The bank faces risks from the high cost of credit, particularly noted in the subsidiaries' operations; notably a 300 basis point quarter-on-quarter increase in gross cost of credit to 5.6%.
Potential restructuring targets and modification losses could pose financial challenges affecting the bank's loan performance.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
