Banking - OJK optimistic ‘23F loan will grow double digits

Banking - OJK optimistic ‘23F loan will grow double digits After two consecutive months of consistently growing faster banking credit, the Financial Services Authority (OJK) is increasingly optimistic that banking credit can continue to grow to double digits by the end of the year. According to OJK, the increase in credit in the last two months was a positive indication for banks to be able to achieve their credit growth targets. Cycically, credit demand generally also increases at the end of the year, especially working capital credit. As of Aug23, banking credit grew by 9.06% yoy. (Source : Kontan). Comment : We believe loan growth to continue solid in the remaining months of this year and cummulative growth is likely to reach KBVs, market, BI and OJK expectation. We might see working capital to underpin the overall total loan growth, while consumer will play important role as well. Softened growth might occur as the upcoming election could muted loan appetite demand, despite it would not create massive impact to ‘23F figures.