BBCA - 1H24 PATMI above, expecting stronger NIM recovery

KBVS Update
Friday, 26 Jul 24

BBCA: 1H24 PATMI; above, expecting stronger NIM recovery
(Maintain BUY; TP: IDR11,070)

* BBCA 1H24 healthy net profit growth (11.1% yoy) was driven by solid performance from top to bottom. In all, 1H24 PATMI came in above ours and consensus expectation at a run rate of 49.8%/50.3%.

* Robust loan growth (15.5% yoy) remains and continues to surpass industry, ‘24F guidance, and our forecast. The corporate segment remains as the backbone grew by 19.9% yoy. Meanwhile, consumer loan growth of 13.6% yoy was led by personal loans (20.2% yoy), followed by vehicle loans (18.4% yoy).

* Total TPF were 5.0% yoy higher (0.4% qoq) to IDR 1,121tn. We like its customer deposits mixed, with CA recorded as the highest growth (7.4% yoy) followed by SA (4.9% yoy). The flat time deposits growth of 1.7% yoy has added benefit to 1H24 CASA, which stood at 82.2%, or around 0.7% higher than 81.5% in 1H23 (0.7% qoq).

* On risk metrics, the bank recorded a slight increase in gross npl to 2.2% vs. 1.9% in 1H23. Yet, CoC arrives at a better figure of 0.3% vs. 0.5% in 1H23. Consolidated LAR also improved to 6.3% vs. 6.6% in 1Q24 (9.0% in 1H23). NIM expansion has emerged, albeit soft we still like the achievement.

* Maintain BUY BBCA with GGM-TP based on IDR11,070 (4.8x ’24F P/B), while currently trading at 4.6x ‘24F P/B or slightly below +2SD of 4.7x.

Regards,
Akhmad Nurcahyadi - KBVS Research