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BBCA
Contact our analyst Lingga

23% upside, BUY.
26th July, 2021 
Price Rp30,175
Target price Rp37,090


Net Profit up
BBCA posted a net profit of IDR 14.45 trillion, up 18% YoY. Interest expenses declined from repricing time deposits and operating expenses decreased quite significantly -12.1% YoY from accounting change in employee bonus costs which are now accumulated over 12 months,… plus provision expenses increased only 0.4% YoY. PPoP growth slowed to 13.4% YoY as the Net Interest Margin dropped by -0.7% YoY with loan growth of only 0.9% YoY. Non-Interest earnings also decreased -1.2% YoY due to last year's mutual fund gains.
 
CASA Up Significantly
CASA grew significantly by IDR 697.08 trillion or 8.3% YoY driven by an increase in mobile banking and internet banking transactions by 86.4%. BBCA also launched BCA Digital through its subsidiaries and a digital application for merchants.

Loan Growth Slows
Loans grew only 0.9% YoY or 1.2% QoQ, this increase was driven by corporate loans, up 1% YoY, Commercial & SME -1.0% YoY, Consumer -1.7%. BBCA hopes the easing of mobility restrictions will eventually support a rebound in loan demand later this year while maintaining its 4-6% growth target for the year.

Asset quality down
Non-Performing Loans increased to 2.4% from 1.8% in 1Q21. Special Mention Loans also increased to 2.8% from 2.5%. This was mainly due to the downgrade of a IDR 1 trillion debt in the textile sector and an IDR 3 trillion downgrade in the commercial MSME segment. NPLs should stay in the range of 2.4-2.7%. BBCA maintains NPL guidance of 2.4% and Cost of Credit 1.3%-1.5%.

Valuation: 23% Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 37,090 or trading at 4.7x PBV which gives 23% potential upside, Buy.
Download full report here
Previously
​BBCA Apr2021
​BBCA Feb2021
​BBCA Nov2020
​BBCA Jul2020
​BBCA Jun2020
​BBCA Feb2020
​BBCA Nov2019
PT. Binaartha Sekuritas

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