Table of Contents
- 1. Bank Rakyat Indonesia (BBRI) Shares Plunge to Multi-Month Low
- 2. BBRI Share Performance and Market Context
- 3. Broader Market impact
- 4. BBRI’s Recent Performance
- 5. JP morgan’s Revised Outlook
- 6. Analyst recommendations
- 7. Future Outlook
- 8. What factors beyond the general market downturn are contributing to the recent decline in Bank Rakyat Indonesia (BBRI) shares?
- 9. Bank Rakyat Indonesia Shares Tumble: An Expert Analysis
- 10. BBRI’s Sudden Drop & Broader Market impact
- 11. Long-term Performance & Recent Revised Outlook
- 12. mixed Analyst Recommendations & Future Prospects
- 13. Thoughts on the Indonesian banking Sector
Shares of PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) experienced a critically important decline in trading on Thursday, February 27, 2025, reaching levels not seen as September 2021. The drop reflects broader concerns about liquidity, net interest margins (NIM), and the recovery of micro-credit quality within the Indonesian banking sector.
BBRI shares plummeted 5.2% to Rp3,620 per share during the first trading session on Thursday, according to Bloomberg data. The stock traded between Rp3,610 and Rp3,800. This sharp decline marks the largest single-day drop since April 26, 2024. The intraday low of Rp3,610 was the lowest BBRI share price since September 23, 2021.
Other major Indonesian banks also saw declines:
- Bank Central Asia (BBCA) dropped 2.85% to Rp8,525.
- Bank Mandiri (BMRI) plummeted 4.27% to Rp4,710.
- Bank Negara Indonesia (BBNI) decreased 2.99% to Rp4,220.
- Indonesian islamic Bank (BRIS) collapsed 6.97% to Rp2,670 per share.
Broader Market impact
The Composite Stock Price Index (CSPI) mirrored this bearish sentiment, falling 148 points, or 2.24%, to 6,458.27 on Thursday.
BBRI’s Recent Performance
BBRI’s share price has depreciated significantly recently:
- Down 7.4% in the last 5 days.
- Down 14% in the last 30 days.
- Down 41% in the past year.
On February 19, 2025, JP Morgan revised its recommendation and target price for BBRI shares. The investment bank cited concerns about liquidity, net interest margin risk, and the pace of micro-credit quality recovery as factors affecting profit and stock price movement.
JP Morgan downgraded BBRI shares from “overweight” to “neutrals,” also cutting the target price from Rp4,600 to Rp4,200 for the next 12 months.
Analyst recommendations
Despite the recent downturn,some securities firms maintain positive recommendations for BBRI,projecting future credit growth,especially in the micro and corporate sectors,spurred by monetary easing,expansive fiscal policies,and strong economic growth.
OCBC Sekuritas, for example, maintains a “buying recommendation” for Bank Rakyat Indonesia shares with a target price of Rp5,000, though this is lower than previous targets. According to Budi Rustanto, OCBC Securities analyst, in a research note from Monday, February 17, 2025, “We maintain a buying recommendation with a lower-based-based price target of Rp5,000 per share, assuming ROE of 19.7% and equity costs of 10.9%.”
Future Outlook
while BBRI faces short-term headwinds, analysts point to the potential for recovery in credit growth, particularly in the micro and corporate sectors, given supportive macroeconomic policies. Investors should carefully weigh these factors alongside potential risks related to liquidity and asset quality. keep abreast of future earning reports, and consider seeking guidance from a financial professional.
BBRI’s Sudden Drop & Broader Market impact
Archyde: Bank Rakyat Indonesia (BBRI) shares plummeted to a multi-month low recently. What’s your take on this sudden drop?
Dr. Yoga Wiyono,Financial Analyst: The sharp decline in BBRI shares is indeed concerning,but it’s meaningful to look at it within the broader context. Other Indonesian banks also experienced significant drops,and the Composite Stock Price Index (CSPI) mirrored this bearish sentiment.
Archyde: Speaking of context, BBRI’s share price has been depreciating lately. What’s behind this trend?
Long-term Performance & Recent Revised Outlook
Dr. Yoga Wiyono: BBRI’s recent performance has been challenging. It’s down 7.4% in the last 5 days, 14% in the last 30 days, and 41% in the past year. JP Morgan’s recent revision of their outlook for BBRI shares from ‘overweight’ to ‘neutral’ echoes these concerns about liquidity, net interest margin risk, and micro-credit quality recovery.
mixed Analyst Recommendations & Future Prospects
Archyde: Despite the downturn,some securities firms maintain a ‘buy’ recommendation for BBRI. How do you interpret these mixed signals?
Dr. Yoga Wiyono: The divides in analyst recommendations reflect the complex situation BBRI finds itself in. While risks like liquidity and asset quality pose short-term challenges, analysts also point to potential for recovery in credit growth, particularly in the micro and corporate sectors. Macroeconomic policies, like monetary easing and expansive fiscal policies, can mitigate these risks and drive future growth.
Archyde: Lastly, what advice would you give investors currently monitoring BBRI’s situation?
Dr. Yoga Wiyono: Investors should maintain a balanced perspective, carefully weighing BBRI’s opportunities alongside potential risks.Keep track of upcoming earnings reports, and consider seeking guidance from financial professionals for tailored advice.
Thoughts on the Indonesian banking Sector
Archyde: In your opinion, what lies ahead for the Indonesian banking sector, given the recent volatility?
Dr. Yoga Wiyono: The Indonesian banking sector faces a critical period. While challenges persist, so do opportunities. With keen judgment and strategic moves,banks can navigate these headwinds and position themselves for long-term growth. As always, transparency, risk management, and adaptability will be key.
Stay tuned to Archyde for more updates and analysis on the Indonesian financial landscape. What’s your take on BBRI’s recent performance? Share your thoughts in the comments below!
