BBTN - Continuing solid 4M24 bank only earnings growth

KBVS update
Tuesday, 28 May 2024

BBTN: Continuing solid 4M24 earnings growth
(Maintain BUY; TP: IDR1,770)

•    BBTN bank only earnings in April 2024 grew by 8.1% yoy, arrives at 25.6% of our ‘24F for BBTN, or inline vs last year run-rate at 26.7%. In all, higher April24 PATMI growth (vs 1Q24: 7.4% yoy) was mainly driven by stable healthy asset quality which resulting to a sharp provision improvement (-26.7 yoy).

•    Loan and TPF growth continue to beat ‘24F management guidance and our ‘24F for BBTN, while key risk metrics continue surpassing our forecast at 1.1% and far above BBTN’s guidance of 1.1%-1.2% as healthy asset quality remain on track. However, NIM was contracted (11.8bps yoy). We expect to see better portion on TD middle to low institution and retail based as it will be underpinned ‘24F NIM.

•    Year to date drop has made BBTN stock looks more attractive, especially compared to its 2024 high of IDR1,600/share. Worth noting foreign stock ownership on BBTN interestingly has been increasing. Maintain our BUY call for BBTN with GGM TP of IDR1,770/share, pegged at ‘24F P/B of 0.6x.

Regards,
Akhmad Nurcahyadi - KBVS Research team