2Q18’s Profit: Constrained by High Provision
BBRI posted the net profit of IDR7.5 trillion or growing by 10.4% y-y—lower than the estimated net profit of IDR8.4 trillion. The lower net profit was attributable to the high provision cost of IDR5.0 trillion (vs. the estimated provision cost of IDR4.2 trillion). Despite the sliding net profit, the 2Q18’s interest income, net interest income, operating revenue, and pre-provisioning operating profit (PPOP) were pursuant to the estimate we make.
Growth Acceleration in Credit Distribution
BBRI enjoyed the growth of 15.5% y-y to IDR794.3 trillion in credit distribution. The growth was the all-time high since the 1Q17. Its small commercial segment succeeded to marked the growth of 21%, while its SOE segment surged by 24% after sliding in the 1Q18. We overview that its 2018’s credit outgrows 14%.
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