External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Equity Bottom-Up

<ul><li>Supported by 17% yoy loans growth and a relatively steady NIM, BBCA booked net profit of Rp12.9tr in 1Q24 (+12% yoy, +5% qoq), inline.</li><li>Credit quality was in check with NPL at 1.9% in 1Q24 (+9bps yoy, +13bps qoq) but with a lower LaR ratio of 6.3% (-29bps yoy, -314bps qoq).</li><li>We maintain our forecasts, TP and Buy rating; BBCA remains as our top pick in the banking sector.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Supported by 17% yoy loans growth and a relatively steady NIM, BBCA booked net profit of Rp12.9tr in 1Q24 (+12% yoy, +5% qoq), inline.Credit quality was in check with NPL at 1.9% in 1Q24 (+9bps yoy, +13bps qoq) but with a lower LaR ratio of 6.3% (-29bps yoy, -314bps qoq).We maintain our forecasts, TP and Buy rating; BBCA remains as our top pick in the banking sector.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank Central Asia (BBCA.IJ Rp 9,350 BUY; TP Rp 11,300) The Place to Shelter from the Storm

External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Net profit reached IDR48.6tn (+19.4% YoY), in line with our &amp; consensus' target; due to robust expansion of NII growth and reduced provision charges by 50% YoY which resulted in all-time-low CoC of 0.3%.</li><li>NIM remained flat on QoQ at 5.5% and it is anticipated that NIM to remain stable at 5.5%-5.6% in FY24E.</li><li>Management foresee a possibility for a 25-50bps improvement in loan yield.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Net profit reached IDR48.6tn (+19.4% YoY), in line with our &amp; consensus' target; due to robust expansion of NII growth and reduced provision charges by 50% YoY which resulted in all-time-low CoC of 0.3%.NIM remained flat on QoQ at 5.5% and it is anticipated that NIM to remain stable at 5.5%-5.6% in FY24E.Management foresee a possibility for a 25-50bps improvement in loan yield.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BBCA IJ - MNC Sekuritas Equity Report February 2, 2024

<ul><li>Loans growth to moderate in FY24F, earnings trimmed by 3% on lower fees</li><li>BBCA’s reported FY23 net profit of Rp48.6tn (+19%yoy), loans and deposits growth, and NIM were in-line with our estimates</li><li>The management provides guidance for moderation in loans growth at 9-10%, a relatively stable NIM, CoC, and CIR in FY24F</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Loans growth to moderate in FY24F, earnings trimmed by 3% on lower feesBBCA’s reported FY23 net profit of Rp48.6tn (+19%yoy), loans and deposits growth, and NIM were in-line with our estimatesThe management provides guidance for moderation in loans growth at 9-10%, a relatively stable NIM, CoC, and CIR in FY24FContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank Central Asia (BBCA IJ) - Loans Growth to Moderate in FY24F

<ul><li>Bank Central Asia(BBCA IJ)Limited upside despite solid profitability.</li><li>We reiterate our HOLD call on BBCA with a higher GGM-derived TP of IDR10,000 (at 4.4x 2024F PBV) as we roll over our valuation to 2024F post the inline 1H23 set of results</li><li>We assume a lower CoC of 50bps this year and a slight decline to 49bps in FY24F backed by its prudent risk management policy</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank Central Asia(BBCA IJ)Limited upside despite solid profitability.We reiterate our HOLD call on BBCA with a higher GGM-derived TP of IDR10,000 (at 4.4x 2024F PBV) as we roll over our valuation to 2024F post the inline 1H23 set of resultsWe assume a lower CoC of 50bps this year and a slight decline to 49bps in FY24F backed by its prudent risk management policyContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank Central Asia (BBCA IJ) - Limited upside despite solid profitability

Thematic (Sector/Industry)

<ul><li>We estimate the big-4 banks’ FY24F earnings to be potentially 1-6% lower if the BI rate is unchanged; BBCA as the least affected bank.</li><li>While previously a higher-for-longer scenario drove a lower ROE and sharp de-rating, FY24F ROE is resilient amid better asset quality.</li><li>We remain Overweight on the banking sector at the current implied CoE of 9.0%, -1SD to its 5-year average. BBCA remains our top pick.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We estimate the big-4 banks’ FY24F earnings to be potentially 1-6% lower if the BI rate is unchanged; BBCA as the least affected bank.While previously a higher-for-longer scenario drove a lower ROE and sharp de-rating, FY24F ROE is resilient amid better asset quality.We remain Overweight on the banking sector at the current implied CoE of 9.0%, -1SD to its 5-year average. BBCA remains our top pick.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banks: Solid asset quality and capital to weather macro uncertainties (OVERWEIGHT)

Indonesia

PT Bank Central Asia Tbk provides banking and related services.  The Bank also provides custodianship, trusteeship, and management of pension funds of financial institutions.  Through its subsidiaries, the Bank also provides leasing and consumer financing services.

Bank Central Asia (BBCA IJ)