BBCA - Liquidity remain ample, undisbursed loan forecasted stable

BBCA - Liquidity remain ample, undisbursed loan forecasted stable In the midst of geopolitical turmoil which is predicted to influence business actors in attracting bank loans for business expansion, Bank Central Asia (BBCA) is confident in liquidity should adequate enough to capture appetite demand loan this year. The bank also expected undisbursed loan to be stable. As of Nov23, BBCA’s undisbursed loans were still at a relative level with a value of IDR 388 tn. (Source: Kontan). Comment: We believe overall earnings growth in ‘23F likely to come in line with our expectation and should remain solid in ‘24F. As of Nov23 bank only loan growth was 11.5% yoy, supported by an increase in all credit segments, from SMEs to corporations to the consumer credit segment. With stable loan demand appetite, asset quality improvement and our expectation on carefully selected loan yield repricing, we think BBCA growth likely to arrive better than ‘23F figures. Maintain BUY BBCA DDM TP of IDR10,520 (4.8x ’24F P/B).