BBCA – Will rely on corporate segment

Bank Central Asia (BBCA) guiding loan growth at 10%-12% yoy this year with main contribution will continue to come from corporate segment, aside from car loan and retail segment which expected to remain growth at double digit. (Source : Kontan) Comment: We believe loan growth target is achievable (4Q22 loans grew double-digit and surpassing our and BBCA’s 2022F guidance). The higher loan growth coupled with ample liquidity and solid CASA portion, the bank will have sufficient room for NIM expansion. Additionally, we expect stable provision will overall bring BBCA earnings to arrive within the consensus estimates. Albeit the positive outlook, we think its current share price has fairly priced in. Maintain HOLD for BBCA with higher DDM TP of IDR8,920 (4.5x ‘23F P/B).