Banking - OJK forecasted banking industry earnings growth around 10% yoy

Banking - OJK forecasted banking industry earnings growth around 10% yoy Financial Services Authority (OJK) is optimistic that the banking industry's achievements will be better. Where, the bank's net profit growth this year could grow in the range of 9% to 10% on an annual basis. According to OJK, the increase in profits would be supported by credit growth which is projected to continue to grow in double digits. The credit growth can also encourage an increase in NIM which projected to be in the range of 4% to 5%. (Source: Kontan). Comment: We believe the earnings growth range is achievable. Carefully selected loan repricing and softened CoF adjustment will be the key growth, in our view. Moreover, our expectation on stable AQ improvement and manageable CIR will act as additional earnings driver. Maintain our OW stance for banking industry with BBRI and BBNI as our top pick.