BBCA - Disburses IDR125 tn in SME loans in 2024, driving 14% yoy growth

BBCA - Disburses IDR125 tn in SME loans in 2024, driving 14% yoy growth Bank Central Asia (BBCA) significantly increased its lending to Micro, Small, and Medium Enterprises (MSMEs) in 2024, disbursing IDR125 tn, a 14% yoy surge. This robust growth aligns with BCA's commitment to fostering SME development in Indonesia. Beyond financing, BCA emphasizes holistic support, including financial literacy programs, quality improvement initiatives, and market access assistance. This commitment is evident through initiatives like the MSME Corner, BCA MSME Fest, and the MSME Go Export program. Furthermore, BCA actively facilitates market expansion, with nurtured MSMEs achieving export potential of around IDR37 bn in 2024. The bank also provides a range of financial services, including online account opening, credit cards, QRIS payments, and the People's Business Credit (KUR) facility. To enhance competitiveness, BCA supports MSMEs in obtaining halal certificates, having distributed 1,986 free certificates across Indonesia. This multifaceted approach positions BCA as a key driver of SME growth in the Indonesian economy. (Source : Bisnis Indonesia) Comment : BBCA's robust 2024 credit disbursement to MSMEs underscores its commitment to fostering a dynamic SME ecosystem within the Indonesian economy. The bank's comprehensive suite of financial services, encompassing online account opening, credit cards, QRIS integration, the People's Business Credit (KUR) facility, and a diverse range of consumer products, empowers businesses with the tools necessary for growth. This holistic approach, coupled with robust growth across all segments, solidifies BCA's position as a leading financial institution in Indonesia. We maintain our 'BUY' rating on BBCA with a 12M GGM TP of IDR12,510, implying a 4.8x ‘25F P/B.