BBCA - Investment credit grows 13% yoy

BBCA - Investment credit grows 13% yoy The disbursement of investment credit at Bank Central Asia (BBCA) continues to record positive growth throughout 2025, reaching IDR362.4 tn or growing 13% yoy. We see that the performance of the banking industry will align with the economic conditions. The trend of credit growth has been maintained until now said EVP Corporate Communication & Social Responsibility BCA Hera F. Haryn. Nevertheless, BCA continues to monitor various macroeconomic dynamics both domestically and globally, including the potential impact of escalating geopolitical tensions in the Middle East on economic sentiment. According to Hera, in facing the global uncertainty, BCA remains focused on strengthening business fundamentals by applying the principle of prudence. Until the end of 2025, BCA recorded a loan at risk (LAR) provision of 71.6%. Meanwhile, the provision ratio against non-performing loans (NPL) reached 183.8%. According to Hera, the level of reserves is adequate to face potential economic condition uncertainties and the debtor's business risks in the future. (Source : Kontan) Comment : The 13% yoy growth in investment credit acted as a high-quality engine for interest income, as these loans typically involve long-term corporate commitments. Essentially, BCA chose to "weather-proof" its profits against geopolitical tensions in the Middle East and global uncertainty, resulting in a sustainable, albeit more conservative, growth trajectory. YTD, BBCA’s earnings continue arriving within our ‘26F expectation. We anticipate its 1Q26 to also came inline with our and consensus forecast, backed by its resilience loan growth and low funding cost coupled with sufficient Non-II as well as manageable provisions and cost to income. Maintain BUY BBCA with GGM-TP of IDR11,080 (‘4.1x ‘26F P/B).