BBCA - Solid FY24 earnings growth; inline

KBVS Update
Friday, 31 Jan 2025

BBCA: Solid FY24 earnings growth; inline
(Maintain BUY; GGM TP: IDR12,510)

* BBCA delivered a solid 12M24 performance (12.7% yoy), arriving at 100.8% and 99.9% of consensus and our ‘25F earnings for BBCA. 4Q24 PATMI of IDR 13.8tn surpassed our forecast (IDR 13.1tn).

* Robust loan growth continues (13.8% yoy), beating both industry and our ‘25F loan growth projections for BBCA. Despite navigating a period of tight liquidity, the bank achieved a commendable 2.9% yoy growth in total TPF. This growth was primarily driven by a 4.8% yoy increase in SA and a 4.8% yoy expansion in CA (4.4% yoy growth in CASA).

* NIM expansion remain intact (+30bps) coupled with persistence healthy key risk metrics (NPLs declining around 10bps to 1.8%, while AQ remained robust at 0.3%).

* Our cautiously optimistic view on BBCA’s ‘25F earnings will be underpinned by manageable NIM tied with sound asset quality. The bank expects loan growth to hover at 6-8% yoy (KBVS ‘25F: 7% yoy), with NIM range at 5.7-5.8% (KBVS ‘25F: 5.7%) and vigorous credit cost of 30bps.

* Maintain BUY, with 12M GGM-based TP of IDR12,510 (4.9x ‘25F P/B), while currently (3.6x) trading at slightly below its average historical mean of 3.7x.

Regards,
Akhmad Nurcahyadi - KBVS Research