BBCA - Syariah bank opens opportunities for consolidation with other Sharia banks

BBCA - Syariah bank opens opportunities for consolidation with other Sharia banks Bank BCA Syariah opens up the potential to participate in enlivening sharia banking consolidation actions in the country. This subsidiary of Bank Central Asia (BBCA) is said to be carrying out active exploration with other sharia banks. Director of BCA Syariah, Pranata, revealed that this exploratory action was carried out to encourage inorganic growth. However, he sees that so far BCA Syariah has used more organic methods. The bank also stated that one of the criteria that must be met when consolidating is that it must be in line with the internal risk appetite of BCA sharia and BCA as a shareholder. Currently BCA syariah are still looking for ones that fit the criteria. (Source : Kontan) Comment : We like BBCA’s plan. Assuming the plan will turn into reality, we believe its ecosystem will strongly help BCA Syariah grow faster compared to other Syariah banks. The conventional business will continue as the backbone, while the syariah bank will effortlessly capture the massive untapped syariah financial market. Maintain BUY BBCA with a GGM-based TP of IDR11,070 (4.9x ’24F P/B).