Banking - KPR channels remain robust

Banking - KPR channels remain robust Home ownership credit (KPR) is the only segment that is able to grow better than other segments. Given that the overall growth rate of bank credit slowed in February 2024 with only 11% growth year over year, In the same month, the Bank of Indonesia (BI) noted that KPR distribution in the period grew 12.6% yoy to IDR723.6 tn. In the survey, the net balance weighted (SBT) for consumer credit, in this case, KPR, was the highest at 36.7%. Meanwhile, the SBT for investment credit and labor capital credit is at 21.9% and 23.9%, respectively. The better growth trend also seems to have continued until the first three months of this year. This is reflected in the Banking Financing Demand and Offer Survey released by BI in March. In the survey, the net balance weighted (SBT) for consumer credit, in this case, KPR, was the highest at 36.7%. Meanwhile, the SBT for investment credit and labor capital credit is 21.9% and 23.9%, respectively. (Source: Kontan. Comment : We expect mortgage growth to continue surpassing other consumer segment loan growth, such as automotive loans. As such, we believe consumer loans as a whole will help total loan growth this year reach 10% year over year. It is worth noting that aside from the consumer segment loan growth, we think working capital loans will continue to play a crucial role in total loan growth, while investment loans are likely to grow below consumer loan growth. Maintain our overweight stance for the banking sector, with BBRI and BBNI as the top picks.