Bank Central Asia (BBCA) - Fully Reflected

Bank Central Asia (BBCA) – Maintain HOLD
Price: Rp6,850 – Target Price: Rp7,000

Fully Reflected

  • Net interest income and net income booked of Rp9.5 tr and Rp6.1 tr, in line with our projection.
  • Net interest income declined by 13.6%, as the impact of PSAK 50 & 55 implementation.
  • Impairment expense declined as much as 94% to Rp134 bn and reversal on allowances is Rp884 bn.
  • On QoQ basis, time deposit decreased around Rp3 tr due to low interest rate.
  • LDR stood at 52.6% indicating strong liquidity.
  • We view that BBCA’s current price has reflected our price target of Rp7,000, implying 4.5x PBV’11.