BBCA - Inline 1H25 earnings

KBVS Update
Friday, 1 Aug 2025

BBCA: Inline 1H25 earnings
(Maintain BUY - GGM TP: IDR11,080)

* BBCA delivered a resilient 1H25 performance, with net income aligning with ours and cons. ‘25F expectation at (49.5%/48.8% vs 47.38%) despite ongoing macroeconomic pressures.

* The bank saw exceptional 12.9% yoy loan growth, significantly outpacing the industry and exceeding BBCA’s guidance. Funding remains solid with CASA growth of 7.3% yoy, maintaining a robust CASA ratio of 83.4%.

* Profitability also impressed, with NIM expanding 10bps to 5.8% (meeting ‘25 guidance) and RoE climbing 40bps. While credit costs slightly increased to 0.5% and NPLs rose 20bps, cumulative yoy NPLs remained at 2.2%, and LAR continued to decline 70bps to 5.7%.

* Despite anticipated slower loan growth and manageable credit cost increases in a cloudier 2H25, our revisited ‘25F model, using multiple valuation methodologies, maintains a BUY recommendation. Our GGM-based TP of IDR11,080 implies a 4.8x ‘25F P/B, offering an attractive upside from its current trading level of 3.6x (at its -2SD), especially following its recent sell-off.

Regards,
Akhmad Nurcahyadi - KBVS Research