Bank Central Asia (BBCA) - High Provision on 1Q11

Bank Central Asia (BBCA) – Downgrade to HOLD
Price: Rp7,600 – Target Price: Rp6,950

High Provision on 1Q11

  • Net income reached Rp2.0 tr below our estimate due to the implementation of new accounting standard
  • Net interest income increased significantly 40.9% and non-interest income dropped 19.5%
  • BBCA booked provision for undisbursment loan (+/-1% from undisbursment-committed loan)
  • We revise our forecast with incorporating the additional provision
  • We change our projections, our target price at Rp6,950 and maintain our recommendation
  • Downgrade to Hold