BBCA - Strong 1Q24 earnings growth

BBCA - Strong 1Q24 earnings growth Bank Central Asia (BBCA) reported strong earnings growth (11.7% yoy) in 1Q24 amid the continuing uncertainty. Net interest income grew by 7.1% yoy, with PPOP recording 8.5% yoy higher. Total loans was noted to be 17.1% yoy higher, while TPF and CASA growth continued to be solid at 7.9% yoy and 7.3% yoy, respectively. It is worth noting that savings accounts booked the highest growth on a quarterly basis, with TD dropping by 0.4% qoq. On key performance, all the key metrics show a steady improvement. (Source : Company) Comment : BBCA’s 1Q24 earnings grew by +11.7% year over year, driven by solid growth from top to bottom and continuing AQ improvement. In all, 1Q24 earnings came in line with ours and consensus expectation at a run rate of 23.9%/24.1% vs. a 5-year average 1Q of 22.3%. Loan trajectory growth remains and recorded a quarterly historical high, thanks to a robust corporate segment (22.1% yoy) and stronger demand in corporate investment loans (28.3% yoy). Amid the continuing uncertainty, BBCA is successfully pocketed a solid 1Q24 result, and this should be translated as a strong foundation to support the remaining quarters of this year. Maintain BUY with a GGM TP of IDR11,070 pegged at 4.9x ‘24F P/B.