BBCA - Strong 9M24 earnings; outperformed

BBCA - Strong 9M24 earnings; outperformed Bank BCA (BBCA) recorded another robust earnings. PATMI growth at 12.8% yoy was underpinned by solid NII and non-interest income growth coupled with provision expenses that remain at low levels. In all, 9M24 earnings arrive above ours and consensus expectation at a run-rate of 76.0%/76.8%. On a quarterly basis, its 3Q24 net income of IDR14.2 tn came in line with our 3Q24F for BBCA of IDR14.3tn (above cons projection). Total loan (14.5% yoy) continues to arrive above industry figures (10.4% yoy) and our ‘FY24F loan growth for BBCA, thanks to the strong growth in corporate (15.9% yoy), SME (14.2% yoy), and consumer segment (13.1% yoy). TPF, as expected, arrives at a flat growth (3.4% yoy), bringing the LDR around 7.7% higher. Yet, we like its high funding cost portion segment, which declined by 4.0% yoy. NIM expansion remain intact, reaching 5.9% in 3Q24 vs 5.6% in 1Q24 and around 30bps higher than our ‘24F NIM for BBCA. Key risk metrics continue to exhibit a positive trend with CoC and NPL figure remain at low level. Additionally, CIR has decreased by 2.7% yoy, suggesting improved operational efficiency. Further details regarding these financial metrics and the overall performance of BBCA will be provided in the upcoming 9M24 Company Update. Comment : Maintain BUY. We will roll over our valuation to FY25 with a higher GGM TP. Our previous TP of IDR11,070 is pegged at 4.8x ‘24F P/B, while currently trading at 4.7x ‘24F P/B, or around +2SD.