BNGA’s net profit grew 4.7% YoY to IDR5.1 trillion in 9M24. This aligns with Interest Income, which grew 7.8% YoY to IDR18 trillion in 9M24.

BNGA revised its Cost of Credit (COC) guidance to below 1% for FY24F. BNGA lowered its COC to 0.88% in 9M24 from 1.22% in 9M23.

Credit growth was accompanied by improvements in asset quality in 9M24. BNGA recorded credit growth of 6.4% YoY to IDR218.5 trillion in 9M24.

Current Account Saving Account (CASA) grew 8.8% YoY in 9M24. CASA was recorded at IDR171 trillion, an increase of 8.8% YoY, with a CASA ratio of 67.7% in 9M24.

CASA growth and selective loan growth are still BNGA’s focus. BNGA will continue to focus on corporate and consumer financing.

Using the Discounted Cash Flow method with a Required Return of 9.4% and Terminal Growth of 4%, we estimate BNGA’s fair value at Rp2,315 (8.57x expected P/E). Therefore, we maintain a buy rating for BNGA with a potential upside of 30.03%

By PHINTRACO SEKURITAS | Research
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