BBCA - Consumer financing of BCA Syariah reaches IDR1.32 tn as of Oct24

BBCA - Consumer financing of BCA Syariah reaches IDR1.32 tn as of Oct24 Bank BCA Syariah recorded positive growth in consumer financing performance until October 2024. This is reflected in the company's outstanding consumer financing reaching IDR1.32 tn. This value grew by 75.16% yoy from the same period last year, which was IDR755.8 bn. The value of consumer financing disbursed by BCA Syariah from January to October 2024 reached IDR713.4 bn. This figure grew by 54.54% from October 2023, which was IDR461.6 bn. The Head of the Retail and Consumer Business Unit of BCA Syariah, Bukit Mas Siahaan, stated that the company's consumer financing portfolio mainly comes from the KPR iB product, reaching IDR1.11 tn, with a total disbursement of IDR511 bn. This is followed by the Emas iB financing, with an outstanding amount of IDR147.1 bn and a total disbursement of IDR172.9 bn. Then, the outstanding motor vehicle credit or KKB iB reached IDR54.9 bn, with a total disbursement of IDR25.2 bn as of October 2024. The smallest consumer financing portfolio comes from the Umrah iB product, with an outstanding amount of IDR628.3 mn and a total disbursement of IDR267.6 mn. (Source : Kontan) Comment : Given the significant untapped potential in the Islamic banking market, BCA Syariah is expected to maintain strong loan growth in the coming quarters. The planned spin-off of BCA Syariah, once regulatory approvals are obtained, is anticipated to benefit the overall BCA Group. We expect BCA Syariah to continue delivering solid earnings growth, which will positively impact BBCA's overall performance. We maintain our "BUY" recommendation for BBCA, with a target price of IDR12,510 based on a 2025 price-to-book (P/B) ratio of 4.8x.