Banking - Four big banks recorded positive growth

Banking - Four big banks recorded positive growth Investors in shares of banks with large market capitalization, are waiting for the second quarter performance report. This report will be an important sentiment that influences the movement of big bank shares after experiencing a long downward trend since mid-March 2024. The four big banks have released their monthly financial reports until May. In terms of profit generation during the first five months, Bank Central Asia (BBCA) emerged as the champion with growth of 11.64 yoy. Then, followed by Bank Rakyat Indonesia (BBRI), with a growth of 8.83% yoy, and Bank Mandiri (BMRI), with a growth of 6.4% yoy. Meanwhile, Bank Negara Indonesia (BBNI) only rose 1.51% yoy. From the credit side, big banks are quite expansive. Bank Mandiri is the champion with outstanding credit as of May 2024, growing by 19.39% yoy. Followed by BBCA with an increase of 15.9% yoy. Meanwhile, BBRI and BBNI grew 10.68% yoy and 12.61% yoy, respectively. (Source: Kontan). Comment : We like four big banks under our coverage (5M24 bank only results), whereas PATMI in that period mostly came in within ours and the street forecast for BBCA, BBRI, BMRI, and BBNI. With such run-rate earnings, we might witness all four banks 1H24F net profit likely to arrive in line with expectations. With the upcoming potential softer uncertainty and rate-cut hope remaining intact, we think the previous sell-off on Indo big bank stocks could get more relaxed and appetite to accumulate the stock could continue. Maintain our OW stance on the sector.