BBCA - Records Paylater users reaching 110,000 customers in May24

BBCA - Records Paylater users reaching 110,000 customers in May24 Bank Central Asia (BBCA) recorded the number of buy now, pay later (BNPL) product users as of May 2024, reaching 110,000 customers. This number grew by 108% compared to the position as of December 2023. Meanwhile, the outstanding has reached IDR223 bn as of May 2024, growing 94% compared to the position in December 2023. This shows the great interest of customers in this product. "Paylater BCA's non-performing loan (NPL) ratio is also well maintained so that BCA's total NPL is maintained below 2% as of March 2024," said Santoso Liem, Director of BCA. Paylater BCA has a credit limit of up to IDR20 mn with competitive installment interest rates of 0% per month for 1 and 3 months and 1.25% per month for 6 and 12 months, valid until Sept24. (Source : Kontan) Comment : Non loan banking products will continue to play crucial role for banking performance and we like BBCA increasing paylater users. We believe risk metrics will also remain manageable and thus will not jeoperdize the overall BBCA’s NPL. Maintain our BUY stance with TP IDR10,150/share, impliying 5.1x ‘23F P/B