Bank Central Asia (BBCA) - Not Surprising

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

Not Surprising

  • On 4Q10, net interest income and net income were booked at Rp3.4 tr and Rp2.4 tr
  • NIM declined by 110 bps because yield asset declined higher than the declining cost of fund The increase on bottom line was also supported by the declining provision and reversal on allowances
  • We maintain our target price and downgrade recommendation from BUY to HOLD. Downgrade to Hold