BBCA - 9M23 earnings 25.8% yoy

BBCA - 9M23 earnings 25.8% yoy Bank Central Asia (BBCA) and subsidiaries posted an increase in net profit of 25.8% on an annual basis (yoy), reaching IDR36.4 tn in the first nine months of 2023. During the first nine months of 2023, BCA also recorded an increase in net interest income (NII) of 21.3% yoy to IDR55.9 tn. Income other than interest grew 9.7% yoy to IDR18.3 tn, supported by an increase in fee and commission income of 7.7% yoy. In total, operational income was recorded at IDR74.2 tn, or an increase of 18.2% yoy. In line with the improvement in asset quality, provision costs were recorded to have decreased by IDR1.6 tn compared to the previous year. Meanwhile, from the intermediation side, as of September 2023, BCA credit grew double digits in almost all segments, with total BCA credit growth reaching 12.3% yoy to IDR766.1 tn. (Source : Kontan). Comment : Bank Central Asia (BBCA) reported 9M23 earnings of IDR36.4 tn, or grew by 25.8% yoy, driven by healthy growth from top to bottom. Net interest income at IDR55.9 tn was grew 21.3% yoy, with PPOP growth arrives at 19.1% yoy. Provisions sharp drop by 41.5% yoy is also helping 9M23 earnings arrives strong. Loan growth 12.33% yoy beating ours, BI and OJK forecast for GGCA’s loan in 2023. Maintain BUY, TP IDR10,150 (5.1x/4.6x ‘23F/’24F P/B), while currently trading at 4.4x ‘23F P/B, at its +1SD of 4.4x.