BBCA - Reports strong 2024 performance

BBCA - Reports strong 2024 performance Bank Central Asia (BBCA) announced a robust 12.7% yoy surge in net profit to IDR54.8 tn in 2024. This growth was fueled by a 9.5% yoy increase in net interest income (NII) to IDR82.3 tn and a 10.2% yoy rise in non-interest income to IDR25.2 tn. BCA's credit portfolio expanded significantly by 13.8% yoy to IDR922 tn, with notable growth across corporate, commercial, and SME segments. The bank maintained strong asset quality with a stable NPL ratio of 1.8% and an improved LAR ratio. On the funding side, BCA's CASA deposits, contributing 82% of total DPK, grew by 4.4% to IDR924 tn. Digital banking continued to thrive, with mobile and internet banking transaction frequency surging 24% yoy to IDR31.6 bn. (Source : Kontan) Comment : BCA's strong financial performance in 2024 demonstrates its resilience and ability to navigate challenging economic conditions. The bank's focus on customer needs, digital innovation, and sustainable growth positions it well for continued success in the future. In all, FY24 PATMI came in at a run rate of 101.1%/100.8% of ours and consensus ‘24F PATMI expectation for BBCA. Additionally, BBCA's exceptional 4Q24 performance, with PATMI surpassing our forecast, underscores the bank's strong financial health. This robust performance is further solidified by a 30bps expansion in NIM to 5.8%, exceeding our projection, while maintaining a strong asset quality profile with NPLs declining to 1.8%. We reiterate our BUY recommendation with a 12-month GGM-TP of IDR 12,510, representing a 4.8x '25F P/B. At the current trading price, which implies a 3.7x '25F P/B, BBCA appears attractively valued, aligning with its average historical valuation.