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BBCA
Contact our analyst Lingga

12% upside. Hold.
29th July, 2020 
Price Rp30,925
Target price Rp34,690


Lower Loans
In the 2Q, loans decreased -2.8% QoQ or by 595,136 billion driven by consumer loans as credit card debt fell by -14.1% QoQ, and Vehicle loans decreased by -9.9% QoQ.  Commercial & SME loans decreased by -3.4% QoQ, while Corporate loans grew by 0,9% QoQ.
 
Credit Restructured
As of 30 June 2020, Restructured loans were Rp 69.3 tn, or 12% of total loans. The restructuring scheme involves extension of terms, as well as deferring principal & interest payments. Mortgages, consumer and auto loans are mostly restructured with extensions. As of July 2020 BBCA has worked on loan restructuring proposals for Rp 116tn, or 20% of the total large loans; 35% of consumer loans and 18% of the total  corporate loans. We estimate that 20%-30% of total loans will be restructured in FY2020. We predict restructuring will have an impact on the Net Interest Margin with an increase in the range of 6%.

Lower Net Income
Net Income decreased -14% QoQ. The decrease was caused by Provision Costs which rose because of the ongoing restructuring.  Pre-Provision Operational Profits increased significantly by 13% QoQ because of both higher Net Interest Income and Non-Interest Income.

Valuation: 12% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR 34,690, or trading at 3.8x PBV which gives 12% potential upside, Hold.
Download full report here
Previously
​BBCA Jun2020
​BBCA Feb2020
​BBCA Nov2019
PT. Binaartha Sekuritas

Setiabudi Atrium, Jl. HR Rasuna Said No.62, RT.18/RW.2, Karet Kuningan, Setia Budi, Jakarta Selatan, DKI Jakarta 12920
+62215206678 | email: kyc.online@binaartha.com

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