BBCA
Contact our analyst Achmadi
20% upside, Buy
14th February 2025
Price Rp8975
Target price Rp10800
BBCA FY-2024: Sustaining Double-Digit Profit Growth
BBCA maintained double-digit net income growth in 2024, rising 12.78% YoY to IDR 54.84 trillion, in line with its 9M-2024 performance. This growth was driven by net interest income, which increased 9.78% YoY, and net income from transactions at fair value through profit or loss, which surged 51.23% YoY. We project BBCA’s 2025 net income to reach IDR 60.50 trillion, reflecting a 10.33% YoY increase.
Strong Loan Growth Aligned with ESG Commitments
As of December 2024, BBCA’s gross consolidated loan portfolio expanded 13.76% YoY to IDR 921.88 trillion, driven by a 15.76% increase in corporate loans, reinforcing its role in supporting the national economy. Sustainable financing grew 12.5% YoY, with green financing achieving the highest growth at 13.5% YoY, totaling IDR 99 trillion. The natural resources and sustainable land use sectors accounted for 70% of green financing. By year-end 2025, we estimate BBCA’s loan portfolio will reach IDR 1,040.14 trillion, growing 12.83% YoY.
Improved Asset Quality
BBCA’s bank-only gross NPL ratio improved by 10 bps YoY to 1.80% as of December 2024, with corporate loans remaining the healthiest segment (1.51% NPL ratio, a 33 bps improvement YoY). The bank-only SML ratio also declined by 6 bps YoY. By December 2025, we expect the NPL ratio to improve to 1.56%, while the SML ratio will be at 1.61%, reflecting BBCA’s prudent risk management.
CASA Growth Driven by Digital Transactions
BBCA’s CASA ratio reached 81.51% in December 2024, rising 121 bps YoY, supported by a 4.45% increase in CASA balances and a 3.41% decline in time deposits. Digital initiatives contributed significantly, with mobile and internet banking transactions up 23.5%, totaling 31.6 billion transactions, valued at IDR 28,261 trillion (+13.8% YoY).
Valuation: 20% Upside, Buy
Our DDM valuation revises BBCA’s one-year target price to IDR 10,800, implying a 4.97x PBV and a 20% upside. We maintain our Buy recommendation.
BBCA maintained double-digit net income growth in 2024, rising 12.78% YoY to IDR 54.84 trillion, in line with its 9M-2024 performance. This growth was driven by net interest income, which increased 9.78% YoY, and net income from transactions at fair value through profit or loss, which surged 51.23% YoY. We project BBCA’s 2025 net income to reach IDR 60.50 trillion, reflecting a 10.33% YoY increase.
Strong Loan Growth Aligned with ESG Commitments
As of December 2024, BBCA’s gross consolidated loan portfolio expanded 13.76% YoY to IDR 921.88 trillion, driven by a 15.76% increase in corporate loans, reinforcing its role in supporting the national economy. Sustainable financing grew 12.5% YoY, with green financing achieving the highest growth at 13.5% YoY, totaling IDR 99 trillion. The natural resources and sustainable land use sectors accounted for 70% of green financing. By year-end 2025, we estimate BBCA’s loan portfolio will reach IDR 1,040.14 trillion, growing 12.83% YoY.
Improved Asset Quality
BBCA’s bank-only gross NPL ratio improved by 10 bps YoY to 1.80% as of December 2024, with corporate loans remaining the healthiest segment (1.51% NPL ratio, a 33 bps improvement YoY). The bank-only SML ratio also declined by 6 bps YoY. By December 2025, we expect the NPL ratio to improve to 1.56%, while the SML ratio will be at 1.61%, reflecting BBCA’s prudent risk management.
CASA Growth Driven by Digital Transactions
BBCA’s CASA ratio reached 81.51% in December 2024, rising 121 bps YoY, supported by a 4.45% increase in CASA balances and a 3.41% decline in time deposits. Digital initiatives contributed significantly, with mobile and internet banking transactions up 23.5%, totaling 31.6 billion transactions, valued at IDR 28,261 trillion (+13.8% YoY).
Valuation: 20% Upside, Buy
Our DDM valuation revises BBCA’s one-year target price to IDR 10,800, implying a 4.97x PBV and a 20% upside. We maintain our Buy recommendation.
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