BBCA - Solid 5M25 and May25 stand-alone earnings growth

KBVS Update
Thursday, 19 June 2025

BBCA – Solid 5M25 and May25 stand-alone earnings growth
(Maintain BUY; GGM TP: IDR12,510)

* BBCA delivered impressive earnings growth in both 5M25 and May25, with net income rising 16.3% yoy and 12.1% yoy (9.7% mom) respectively. This brought the 5M25 bank-only results in line with our ‘25F expectations, achieving a 43.0% run-rate (consensus: 42.3%), pointedly surpassing last year's 39.5%.

* Robust loan growth continued at 11.8% yoy, well exceeding both the ’25F management guidance of 6%-8% yoy and our forecast (6.6%). On the funding side, total TPF grew a healthy 5.6% yoy and 6.3% ytd, primarily driven by low-cost funding.

* Key ratios remained strong: NIM reached 5.73%, perfectly aligning with both management's 5.7%-5.8% guidance and our 5.7% 2025 forecast. BBCA recording the lowest yoy sold stock at just 0.6%, behind BBRI (-4.5%), BBNI (-2.6%), and BMRI (-2.0%), underscoring its continued appeal as a preferred investment.

* The inline 5M25 result will overall help BBCA to record another inline run-rate in 1H25 period. In all, we believe ‘25F guidance sound achievable. Despite its steady low CoF, we also expect the previous cut rate (prior May25 cut rate) transmission to funding cost will happened sooner than anticipated.

* Maintain BUY with GGM-TP IDR12,510 (5.0x ‘25F P/B), while currently trade at 3.6x ‘25F P/B or slightly below its average of 3.7x ‘25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team