ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Bank Central Asia – Light At The End Of The Tunnel

Bank Central Asia – Good, But New Credit Challenges Ahead

Bank Central Asia (BBCA IJ) - Back to the Business of Consumption

Bank Central Asia (BBCA IJ) - Liability Protection

Bank Central Asia (BBCA IJ) - Sustainable Virtual Recovery Ahead

Gravity Works As WeWork Doesn't; Now Plan B

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> released a respectable set of FY2020 results this week with pre-provisioning operating profit (PPOP) increasing by +11.2% YoY. Net profit declined by -5.0% YoY to IDR27.1tn, due to higher provisioning level but on the positive side, provisions fell by -5.1% QoQ in 4Q2020, suggesting we are over the worst.
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The bank saw a -2.1% decline in loans YoY in 2020, mainly due to slower business activities with a lower loan utilization rate but corporate loans increased +7.7% YoY.
Commercial and SME loans declined by -7.9% over the period, whilst consumer loans dropped -10.8% YoY, driven by autos and credit cards, with mortgages declining by a lesser -3.7% YoY.
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> has started to promote its mortgages and auto loans through virtual expos with some degree of success. It also intends to do the same for SMEs to better utilize credit balances with its existing customers. 
On the funding side of things, the bank reported strong growth in third-party funds of +19.3% YoY, with current account and savings accounts (CASA) increasing by +21.0% YoY. In the meantime, liquidity growth has enabled the bank to generate higher income from treasury assets compensating for the tepid lending environment.
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> posted a very respectable ROA of 3.3% in 2020 and an ROE of 16.5% both of which look impressive in the face of the pandemic. 
The bank continues to see growing adoption of its mobile banking, which helps to boost transactional banking. The number of transactions through the bank's mobile and internet channels grew at an impressive +50.7% YoY in 2020. 
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> remains one of our top picks amongst the Indonesian banks, given its very strong risk management structure but at the same time innovative and opportunistic strategies.
The bank has taken provisions early but has also benefited from strong liquidity flows, given its leading position in transactional banking. It is all too easy to brand the bank as expensive but it commands a premium for a reason and hence it remains a core holding. It trades at 4.2x FY21E PBV with a forecast ROE of 16.5%, which may be conservative in the face of a recovery, especially in 2H2020.

Bank Central Asia (BBCA IJ) released a respectable set of FY2020 results this week with pre-provisioning operating profit (PPOP) increasing by +11.2% YoY. Net profit declined by -5.0% YoY to IDR27.1tn, due to higher provisioning level but on the positive side, provisions fell by -5.1% QoQ in 4Q2020, suggesting we are over the worst.



The bank saw a -2.1% decline in loans YoY in 2020, mainly due to slower business activities with a lower loan utilization rate but corporate loans increased +7.7% YoY.
Commercial and SME loans declined by -7.9% over the period, whilst consumer loans dropped -10.8% YoY, driven by autos and credit cards, with mortgages declining by a lesser -3.7% YoY.
Bank Central Asia (BBCA IJ) has started to promote its mortgages and auto loans through virtual expos with some degree of success. It also intends to do the same for SMEs to better utilize credit balances with its existing customers. 
On the funding side of things, the bank reported strong growth in third-party funds of +19.3% YoY, with current account and savings accounts (CASA) increasing by +21.0% YoY. In the meantime, liquidity growth has enabled the bank to generate higher income from treasury assets compensating for the tepid lending environment.
Bank Central Asia (BBCA IJ) posted a very respectable ROA of 3.3% in 2020 and an ROE of 16.5% both of which look impressive in the face of the pandemic. 
The bank continues to see growing adoption of its mobile banking, which helps to boost transactional banking. The number of transactions through the bank's mobile and internet channels grew at an impressive +50.7% YoY in 2020. 
Bank Central Asia (BBCA IJ) remains one of our top picks amongst the Indonesian banks, given its very strong risk management structure but at the same time innovative and opportunistic strategies.
The bank has taken provisions early but has also benefited from strong liquidity flows, given its leading position in transactional banking. It is all too easy to brand the bank as expensive but it commands a premium for a reason and hence it remains a core holding. It trades at 4.2x FY21E PBV with a forecast ROE of 16.5%, which may be conservative in the face of a recovery, especially in 2H2020.

Bank Central Asia (BBCA IJ) - More Than Respectable