BJBR
Contact our analyst Lingga
24% upside, Buy
30th March 2021
Price Rp1,495
Target price Rp1,850
Credit growth jumped
In FY20, credits jumped 9.3% YoY. Growth was supported by the consumer segment with growth of 6.4%, (from civil servant and pension loans), Micro 6.7%, Mortgage 9.4%, and commercial which grew by 22.9% YoY, mainly from state-owned pharmaceutical companies. We estimate credit growth will be 9,29% in 2021F
Asset Quality improved
Non-Performing Loans decreased to 1.4% from 1.5% in 3Q20. This decline was driven by the Micro Loans, Commercial Loans, and Mortgage Loans. Special Mention Loans also decreased to 2% from 2,3% in 3Q20, with a higher Coverage Ratio of 139,4% from 138% in 3Q20. We estimate Non-Performing Loans will be 1,7% with a Coverage Ratio of 130% in 2021F
Restructured Loans
In FY2020, BJBR has only restructured loans amounting to IDR 2.9 trillion (3.3% of total loans). Most of the credit restructuring came from the commercial and micro-loans, and a small portion was from consumer loans, mainly to civil servants with fixed income.
BJBR’s Focus
In 2021, BJBR will still focus on expanding their consumer business, particularly civil servant and pension loans. To support that organizationally, the bank has separated active ASN management and Pensioners into two different divisions. Growth will also come from commercial and corporate loans, especially infrastructure related,, BUMN, Syndication, and other Government related projects.
Valuation: 24% Upside potential, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR 1,850, which would mean the shares trading at 1.1x PBV and gives 24% upside potential. Buy.
In FY20, credits jumped 9.3% YoY. Growth was supported by the consumer segment with growth of 6.4%, (from civil servant and pension loans), Micro 6.7%, Mortgage 9.4%, and commercial which grew by 22.9% YoY, mainly from state-owned pharmaceutical companies. We estimate credit growth will be 9,29% in 2021F
Asset Quality improved
Non-Performing Loans decreased to 1.4% from 1.5% in 3Q20. This decline was driven by the Micro Loans, Commercial Loans, and Mortgage Loans. Special Mention Loans also decreased to 2% from 2,3% in 3Q20, with a higher Coverage Ratio of 139,4% from 138% in 3Q20. We estimate Non-Performing Loans will be 1,7% with a Coverage Ratio of 130% in 2021F
Restructured Loans
In FY2020, BJBR has only restructured loans amounting to IDR 2.9 trillion (3.3% of total loans). Most of the credit restructuring came from the commercial and micro-loans, and a small portion was from consumer loans, mainly to civil servants with fixed income.
BJBR’s Focus
In 2021, BJBR will still focus on expanding their consumer business, particularly civil servant and pension loans. To support that organizationally, the bank has separated active ASN management and Pensioners into two different divisions. Growth will also come from commercial and corporate loans, especially infrastructure related,, BUMN, Syndication, and other Government related projects.
Valuation: 24% Upside potential, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR 1,850, which would mean the shares trading at 1.1x PBV and gives 24% upside potential. Buy.
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