Banking - The average household savings are declining

Banking - The average household savings are declining The downward trend in people's savings has not stopped. This is reflected in the average household savings per account, which continues to shrink, with several factors causing this. Bank Indonesia data as of July 2024 recorded that the average household savings per bank account was recorded at IDR4.28 mn. This figure decreased from the same period the previous year by 6.3% yoy). In the same period, total household savings actually still recorded annual growth of around 5.2% yoy. From July 2023, which was still IDR2,324 tn, it will become IDR 2,445 tn. (Source : Kontan) Comment : We think the increasing amount of banking account per consumer has made savings look declining. On the other hand, we accept that there’s a possibility of spending to be stagnant in the wait and see stance. In all, a tight liquidity environment is more impacted by banks efforts to maintain the cost of funding. In the scenario SA will continue to flat, we expect CA will overall manage total CASA. On TD, we expect a lower interest rate could underpin the total customer deposit growth. Maintain our overweight stance for the banking sector with BBRI and BBNI as the picks.