BBCA- Solid ’23 result, expecting to continue this year

KBVS Update
Monday, 29 Jan 2024

BBCA: Solid ‘23 result, expecting to continue this year
(Maintain BUY; TP: IDR10,520)

•    FY23 BBCA’s earnings grew strong at +19.4% yoy driven by solid growth from top to bottom. In all, FY23 earnings came above both ours and consensus at run rate of 106%/105%.
•    Loan growth at 13.9% yoy to IDR810.4 tn, with a solid quarter on quarter growth at 5.8% yoy and arrives above our expectation (+11% yoy), far above industry loan growth of 10.4% yoy. Total TPF grew by 6% yoy or 220bps higher versus industry growth at 3.8% yoy. CASA portion remain strong at 80.3% and around 40bps better than 79.9% in 3Q23.
•    BBCA managed another solid key performance figure across the boards, with 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 was well managed at 1.9% (FY23) and improves qoq by -20bps to 1.9% from 2.1% in 3Q23.
•    We believe ‘24F will be another solid year for BBCA. Accelerated loan growth in 4Q23 should positively impacted to BBCA’s ‘24F book, while our expectation on steady loan growth, soften CoF adjustment, stable NIM, continuing CIR improvement and steady soft provisions as well as a potential benchmark cut rates should overall underpin ‘24F growth.
•    Maintain BUY with GGM TP of IDR10,520 pegged at 4.8x ‘24F P/B while currently trading at 4.2x ‘24F P/B, or at its +1SD of 4.2x.

Regards,
Akhmad Nurcahyadi - KBVS Research