BBCA - KTA 1H23 analyst meeting

Bank Central Asia (BBCA) 1H23 net profit came in at IDR24.2 tn, grew by 34% yoy, 9.8% qoq, driven by solid net interest income growth, manageable opex and a sharp drop in provisions. Loans grew by 9.0% yoy, 3.1% qoq, thanks to corporate loans which recorded higher to IDR326 tn with strong consumer loans growth of 13.9% yoy. CASA stood at IDR865 tn, grew by 5.7% yoy, 2.5% qoq and bringing total TPF reached IDR1,071 tn (6.0% yoy, 3.1% qoq). Key metrics remain solid with NIM expanded by 60 bps, CoC and NPL improves by 70 bps and 30 bps, while RoE arrived 460 bps yoy, 380 bps qoq higher to 24.2% and 26.1%. (Source: Company, KB Valbury Sekuritas). Comment : BBCA’s 1H23 came in both above ours and street expectation. We believe 2H23 results should remain robust, ceteris paribus and likely to continue beats consensus forecast. CASA continues as BBCA’s backbone and thus will overall support NIM expansion. Ceteris paribus, new booking and steady lower provisions will become as additional catalyst for ‘23F PATMI growth, aside from our expectation on continuing manageable CoC