BBCA : Credit Quality Remains Healthy Amidst Macroeconomic Conditions
29 Jul 2024BBCA’s net profit grew 11.1% yoy to IDR26.9 trillion in 6M24 (IDR61.53 trillion Annualized or 47% of our 2024F).
Resilience in loan growth in the last five years. BBCA recorded loan growth of 15.5% yoy in 6M24.
BBCA’s credit quality remains healthy amidst macroeconomic conditions.
BBCA’s Current Account Savings Account (CASA) ratio is consistently above the industry.
Lowest Cost of Fund (COF) compared to peers amidst high interest rates. Despite high interest rates, BBCA’s cost of funds has remained stable in the last five years
Strong customer relationships are BBCA’s competitive advantage. The number of customers increased 6% yoy to 31.9 billion in 6M24, with transaction volume reaching 17 billion (+21% yoy) in 6M24.
Using the Discounted Cash Flow method with a Required Return of 10.21% and Terminal Growth of 8.09%, we estimate the fair value of BBCA at 10,950 (24.71x expected P/E). So, we give BBCA a hold rating with a higher target and potential upside of 8.84%.
By PHINTRACO SEKURITAS | Research
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