BBCA - KTA FY23 analyst meeting

BBCA - KTA FY23 analyst meeting Bank Central Asia (BBCA) FY23 earnings at IDR48.6tn (19.4% yoy). PATMI solid growth mainly driven by strong growth from top to bottom with NII and PPOP noted 17.6% yoy and 13.8% yoy. Loan growth at 13.9% yoy (5.8% qoq). On key metrics, the bank recorded another solid figure across the boards, whereas NIM and CoC continue to record a better number by 20bps to 5.5% and 40bps to 0.3%, respectively. On asset quality side, NPL remain well managed at 1.9% (FY23) and improves qoq by -20bps to 1.9% from 2.1% in 3Q23. (Source: Company). Comment: In all, FY23 earnings arrives above both ours and consensus at a run rate of 106%/105%. FY23 loan growth arrives above our expectation (11% yoy) and far above industry loan growth of 10.4% yoy. At this juncture, we continue to like BBCA and believe that 2024 will be another solid year for the bank, ceteris paribus. Maintain BUY BBCA with DDM-based TP of IDR10,520 (4.8x ’24F P/B).