Banking - Average household savings in Banking continue to decline

Banking - Average household savings in Banking continue to decline Signs of the community's economy being increasingly squeezed are starting to become apparent. This is reflected in the average savings of the public in banks, which are increasingly declining. Bank Indonesia (BI) data shows that as of October 2024, the average Third Party Funds (DPK) per household account in banks is only around IDR6.58 mn. This is the lowest throughout 2024. As for savings in the form of deposits, they follow the same pattern. The average household savings per account amount to IDR4.19 mn, which is the lowest since the beginning of the year. (Source : Kontan) Comment : We expect better deposit growth in 2025. Exploring alternative funding sources and better deposit mix will become as additional key growth for the bank. On bottom-line side, we believe credit cost and Non-II will play crucial role for banking to maintain steady earnings growth. Maintain our OW stance for banking sector, with BBCA and BMRI as our picks. We prefer BRIS on syariah banking.