BBCA : BBCA’s Advantage Includes the Highest CASA and Lowest CoF

02 Jan 2024 Valdy

>BBCA’s net profit increased 26% yoy to IDR 36.4 trillion in 9M23.This growth was in line with the growth in NII (+21.3%) yoy and a decrease in provision costs (-41.5%) yoy.

>BBCA’s credit quality remains healthy despite high credit growth. BBCA recorded gross Non-Performing Loans (NPL) falling 20 bps to 2.0% yoy in 9M23.

>Consistently records the highest CASA ratio compared to peers in the last three years.

>Lowest Cost of Funds (CoF) compared to peers amidst high-interest rates.

>BBCA will optimize Loan to Deposit Ratio (LDR) in 2024F, accompanied by a decrease in Loan at Risk (LaR) in 2023.

>BBCA is developing Two flagship mobile apps, myBCA and BCAmobile.

>Using the Discounted Cash Flow method with a Required Return of 10.14% and Terminal Growth of 7.97%, we estimate the fair value of BBCA at 10,718 (26.97x expected P/E).

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