BBCA - Another solid monthly earnings to support 9M24

KBVS Update
Thursday, 22 Aug 2024

BBCA: Another solid monthly earnings to support 9M24
(Maintain BUY; TP: IDR11,070)

* BBCA Bank's only net profit grew strong by 12.4% year over year to IDR 31.4 trillion,. In all, BBCA 7M24 PATMI came in line with our ‘24F net profit for BBCA at a run-rate of 58.1%. On a monthly stand alone, our Jul24F bank only net profit for BBCA of IDR4.87tn came in at 101% of BBCA’s Jul24 bank only PATMI of IDR4.91tn.

* The bank saw another solid total loan growth. Albeit considerably flat at 0.9% mom, the figure was recorded as a better figure from -0.3% mom in the previous period and booked a very strong growth in yearly basis of 14.5% yoy to IDR 823.34tn. The loan growth came in far above ‘24F management guidance of 9%-10% yoy and our ‘24F loan growth forecast for BBCA of 9.6% yoy.

* With such solid 7M24 bank-only PATMI and robust loan growth, we believe the 9M24 period will be another solid result for the bank, driven by healthy top-line growth with the absence of flat NIM and coupled with steady low-risk metrics.

* NIM stood at around 5.7% and higher vs. around 5.5% in 1Q24, while CoC consistently arrives at a much lower figure. We believe the NIM expansion and risk metrics figure will continue to perform well in the remaining quarters of this year. Worth noting that bank only 7M24 NIM and CoC has exceeded our 24F for BBCA.

* Maintain BUY; GGM TP of IDR11,070. Our GGM intrinsic value for BBCA is pegged at 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