BBCA - Optimistic banking credit still has the potential to grow double digits

BBCA - Optimistic banking credit still has the potential to grow double digits Bank Central Asia (BBCA) views the growth of the banking industry's credit in 2026 as still quite promising, as various government programs are expected to boost national economic activity. BCA President Director, Hendra Lembong, stated that there are still opportunities for double-digit credit growth across the industry. However, achieving this will heavily depend on banks' efforts to seize these opportunities amidst the still volatile global dynamics. From the perspective of business actors, Hendra believes the attitude of the business world is still diverse. Some entrepreneurs are starting to expand again, while others are choosing to take a wait-and-see approach. This condition is considered normal given global uncertainty, especially regarding geopolitical issues and tariff policies that can change rapidly. In line with these prospects, BCA is preparing a selective and sustainable credit growth strategy for 2026, including in the corporate credit segment. The company will continue to leverage investment momentum and productive projects aligned with government programs, while maintaining a principle of prudence amidst global uncertainty. (Source : Company) Comment : We believe BBCA will continue to record steady loan growth. The ‘26F of 8-10% yoy is csound acceptable. Corporate lending will continue as the growth driver supported with the similar sector in FY25 coupled with other new industry driver that will be benefit from this year government programs. Commercial will continue to play crucial role in ‘26F overall loan growth. Worth to note that our cautiously optimistic view on SME and consumer sectors remains. Yet, we still expect growth will be higher compared to FY25. Maintain BUY BBCA, GGM-TP of IDR11,080 (4.1x ‘26F P/B).