Analysts Recommend to Buy Bank Central Asia (BBCA), Here's Their Reasoning

However, Edward continued, BBCA management sees moderate credit growth of 8%-10% in 2024. This comes from a high base in 2023, while business credit demand is expected to slow down due to the election year.

BBCA also plans to adjust the credit interest rate by 25-50bps this year after maintaining it during the recent interest rate hike. NIM is conservatively projected to remain stable at the 5.5%-5.6% level.

On the other hand, the overall asset quality is projected to further improve with the risky credit ratio (LAR) possibly decreasing to 4%-6% compared to 2023 at 6.9%.

"This improvement will allow the company to maintain low credit costs at 30-40bps because the LAR coverage remains sufficient at 70% in 2023," he explained.

Sucor Sekuritas maintains a buy recommendation for BBCA with a target price of IDR 10,500 supported by strong asset quality and deposit franchise, coupled with extraordinary profitability with the highest ROE in the industry that will continue to justify high valuations.