Strength
Solid 1H24 earnings growth of 11.1% YoY, driven mainly by strong loan growth (15.5% YoY) and lower CoC (-20bps YoY), as the bank managed to lower its LAR ratio to 6.4% in 1H24 (-260bps YoY)
Opportunity
Given that BBCA has the highest CASA ratio (81%) among our banking coverage (Sector: 62%), it would benefit most if BI were to cut the 7DRR in 2H24, as BBCA would be able to adjust TD rate immediately; our raised TP provides further upside potential
Weakness
LDR rose to 72.7% in 2Q24 (+700bps YoY), as deposits only grew 5.0% YoY; NPL rose to 2.2% as BBCA downgraded some of its loans
Threat
The bank may need to raise CoC if asset quality deteriorates further due to USD/IDR depreciation
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.