BBCA - As of July, BCA earned net profit of IDR31.4 tn

BBCA - As of July, BCA earned net profit of IDR31.4 tn The bank only performance of Bank Central Asia (BBCA) in July 2024 is considered a positive performance, with an increase in operating income before provisions or pre-provisioning operating profit (PPOP). This supported net profit growth to IDR4.9 tn or an increase of 1.2% mom or an increase of 17.1% yoy. These results make net profit for seven months in 2024 grow to IDR31.4 tn or an increase of 12.4% yoy. This positive performance is supported by three things. Namely, credit growth is sloping, but still strong. Then the NIM increased due to the shift in asset mix, then the credit cost was still well maintained. Meanwhile, credit growth as of July 2024 sloped to a level of 14.5% yoy versus June 2024 which rose 15.4% yoy, but still above management's full year 2024 guidance at the level of 9–10%. Comment : BBCA Jul24 bank only earnings arrive at our Jul24 expectation for BBCA, while in the 7M24 period it also came in in line with our 7M24 forecast for BBCA. We believe Aug24 and 9M24 earnings will remain solid and with the potential fed rate cut as well as softened wait and see stance, BBCA will effortlessly to reach both ours and consensus ‘24F earnings expectation. Maintain BUY BBCA with GGM-TP based on IDR11,070 (4.8x ’24F P/B), while currently trading at 4.6x ‘24F P/B or slightly below +2SD.