PT DBS Vickers Securities Indonesia and PT Panin Sekuritas recommended buy on PT Bank Central Asia Tbk (BBCA)’s stocks targeting prices of Rp 16,200 and Rp 15,000 respectively. BBCA’s performance in the second quarter of 2016 which recorded 12.1% net profit hike to Rp 9.6 trillion and the growth of current account saving account (CASA) which is higher than deposit are the catalysts for the bank’s stock price movement.
Lim Sue Lin, DBS’ Analyst, said in a research that BBCA has the strongest CASA ratio compared to its competitors and consistently stays above 75% of total third-party fund (DPK). “With those advantages, BBCA is able to face regulation changes, especially demand from the government to lower lending rate to a single digit,” Lim said. BBCA’s DPK in the second quarter of 2016 climbed 8% to Rp 490.6 trillion sustained by a 10% rise in CASA to Rp 381.3 trillion whereas deposits were flat at Rp 109.3 trillion.
BBCA’s net interest income and other operating revenues also went up 15.5% to Rp 26.1 trillion in line with 11.5% credit growth to Rp 387 trillion. However, a rise in BBCA’s non-performing loan (NPL) ratio to 1.4% as of June 2016 from June 2015’s 0.7% should be noted. DBS predicted that BBCA’s NPL ratio as of the end of 2016 would reach 1.7% due to Indonesia’s decelerating macroeconomic growth prospect and pressure from bank credit exposure to commodity sector.
On Thursday’s stock trading (7/21), BBCA’s stock price gained 0.69% to Rp 14,550 after it reached its highest level at Rp 14,675. BBCA’s stock becomes one of top gainers amid LQ45 stock collection with transaction worth Rp 1.18 trillion. (*)
Add Comment