BNGA
Contact our analyst Lingga
19% upside. BUY.
28th March 2022
Price Rp 1,080
Target price Rp1,280
Net profit increased significantly
In 2021, Bank CIMB Niaga (BNGA) recorded a net profit of IDR 4.2 trillion, up 109,4% YoY. This increase was driven by Non interest income which increased by 15.2% YoY to make PPOP grow by 13,8% YoY. In addition, Operating Expenses were stable. BNGA expects strong credit growth and operating income growth to continue in 2022F.
Good Loan and Deposit growth
Loans grew by 3,9% YoY driven by consumer loans up 9.2% YoY which in turn was driven by Mortgages up 9% YoY, Auto loans grew by 28,8% YoY and Corporate loans 7%. BNGA is still focused on consumer and SME loan growth which is supported by their branch network and because the loans have a lower risk profile. We estimate credit growth will be in the range of 4-6% in 2022F. Total Deposits were up 16.3% driven by CASA growth of 19.7% ( Current accounts 35.1% and Saving accounts 6,9%). Time deposits were up 11.3%.
Increased Digital transactions
Digital revenue grew by 47% YoY to IDR 306 billion. The value of digital transactions through OCTO Mobile also increased by 41% YoY to IDR 37 trillion and OCTO Clicks grew by 7% YoY to IDR 24 trillion. Meanwhile, ATM transactions decreased by 6.4% YoY to IDR 20 trillion.
Valuation: 19% Upside, BUY.
Based on our DDM Valuation, we have a target price within one year of IDR 1,280 or trading at 0.6x PBV which gives 19% potential upside, Buy.
In 2021, Bank CIMB Niaga (BNGA) recorded a net profit of IDR 4.2 trillion, up 109,4% YoY. This increase was driven by Non interest income which increased by 15.2% YoY to make PPOP grow by 13,8% YoY. In addition, Operating Expenses were stable. BNGA expects strong credit growth and operating income growth to continue in 2022F.
Good Loan and Deposit growth
Loans grew by 3,9% YoY driven by consumer loans up 9.2% YoY which in turn was driven by Mortgages up 9% YoY, Auto loans grew by 28,8% YoY and Corporate loans 7%. BNGA is still focused on consumer and SME loan growth which is supported by their branch network and because the loans have a lower risk profile. We estimate credit growth will be in the range of 4-6% in 2022F. Total Deposits were up 16.3% driven by CASA growth of 19.7% ( Current accounts 35.1% and Saving accounts 6,9%). Time deposits were up 11.3%.
Increased Digital transactions
Digital revenue grew by 47% YoY to IDR 306 billion. The value of digital transactions through OCTO Mobile also increased by 41% YoY to IDR 37 trillion and OCTO Clicks grew by 7% YoY to IDR 24 trillion. Meanwhile, ATM transactions decreased by 6.4% YoY to IDR 20 trillion.
Valuation: 19% Upside, BUY.
Based on our DDM Valuation, we have a target price within one year of IDR 1,280 or trading at 0.6x PBV which gives 19% potential upside, Buy.
Previously
