Banking - Feb24 loan grew by 11.28% yoy

Banking - Feb24 loan grew by 11.28% yoy Bank credit grew by 11.28% yoy in February 2024. Even though it is in the high range, credit growth tends to slow down compared to January 2024, which was 11.83% (yoy). The growth was supported by solid demand from several industries, such as agriculture, mining, construction, trade, social services, and business services. On a segmentation basis, investment credit grew by 11.82% yoy, while working capital credit and consumption loans grew by 12.04% yoy and 9.70% yoy, respectively. (Source: Investor Daily) Comment : We like the Feb24 banking sector growth, which arrives slightly above our ‘24F loan growth for the Indonesia banking sector at 10% yoy. We believe the growth is likely to sustain in the following months, driven mainly by the continuing steady appetite demand from industrial origin. On the non-industrial origin side, we believe property-related and other consumer loans will continue to play an important role, while the automotive segment will act as an additional growth driver. Maintain an overweight stance on the banking sector, with BBRI and BBNI as the top picks.