Banking - Corporate financing demand and new credit distribution indicated to increase

Banking - Corporate financing demand and new credit distribution indicated to increase Corporate financing in September 2023 is indicated to increase compared to the previous month. This is reflected in the Weighted Net Balance (WNB) of corporate financing of 16.1%, an increase compared to WBT of 14.7% in August 2023. The source of corporate financing mainly comes from its own funds, followed by financing originating from domestic banking and utilization of facilities tensile slack. New credit distribution by banks in September 2023 is also indicated to increase compared to the previous month. The WNB for new credit distribution in September 2023 was recorded at 92.6%, growing higher than the previous month of 86.2%. (Source : Bank Indonesia). Comment : We believe loan growth in 3Q23 and 4Q23 will continue solid. This month several banks under our coverage will released its 3Q23 earnings and we think result will arrives within our and market expectation. As such, valuation should continue look attractive and become more appealing as we will roll over to ‘24F period.