BNGA
Contact our analyst Lingga
19% upside. Hold.
5th March 2021
Price Rp1,095
Target price Rp1,300
Loan Growth Increased
Loan growth increased 10% YoY. Growth was driven by Consumer loans, up 1.7% YoY, Mortgages, up 5.9% YoY and Auto Loans, up 4.5%. BNGA is quite competitive in the KPR loan segment. BNGA plans to continue to concentrate on the consumer segment, while growth in the corporate segment is expected to be flat this year. We estimate loan growth to be around 3.74% in 2021F.
Lower loan restructuring
Non-performing loans increased to 3.62% from 2.79% in FY19 with corporate NPLs at 4.1%, Commercial 5.7%, SME 2.8%, and Consumer 1.8%. Special Mention Loans increased to 6.33% from 4.95% in FY19. The total restructured loan portfolio was -11% lower at Rp25.5tn or equivalent to 14.6% of the total loan book and management estimates this downward trend in restructuring will continue in 1Q21.
BNGA Mobile Banking Focus
BNGA Octo Mobile is growing and in FY20 the transaction value of Octo Mobile increased by Rp9.6 trillion (GMV) or 45% YoY and the total value of digital channel transactions in FY20 increased by 26% YoY (both Octo Click and Mobile). Focus of the developing digital brands is on driving new mortgage loans from the property sector.
Valuation: 19% Upside, HOLD
Based on our DDM Valuation, we have a target price within one year of IDR 1300 or trading at 0.7x PBV which gives 19% potential upside, Hold.
Loan growth increased 10% YoY. Growth was driven by Consumer loans, up 1.7% YoY, Mortgages, up 5.9% YoY and Auto Loans, up 4.5%. BNGA is quite competitive in the KPR loan segment. BNGA plans to continue to concentrate on the consumer segment, while growth in the corporate segment is expected to be flat this year. We estimate loan growth to be around 3.74% in 2021F.
Lower loan restructuring
Non-performing loans increased to 3.62% from 2.79% in FY19 with corporate NPLs at 4.1%, Commercial 5.7%, SME 2.8%, and Consumer 1.8%. Special Mention Loans increased to 6.33% from 4.95% in FY19. The total restructured loan portfolio was -11% lower at Rp25.5tn or equivalent to 14.6% of the total loan book and management estimates this downward trend in restructuring will continue in 1Q21.
BNGA Mobile Banking Focus
BNGA Octo Mobile is growing and in FY20 the transaction value of Octo Mobile increased by Rp9.6 trillion (GMV) or 45% YoY and the total value of digital channel transactions in FY20 increased by 26% YoY (both Octo Click and Mobile). Focus of the developing digital brands is on driving new mortgage loans from the property sector.
Valuation: 19% Upside, HOLD
Based on our DDM Valuation, we have a target price within one year of IDR 1300 or trading at 0.7x PBV which gives 19% potential upside, Hold.
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