Company Coverage
Bank Central Asia (BBCA IJ): 2Q26: Defensive Growth Sets The Stage For A Stronger 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Rp6,275
Rp8,150
+29.9%
Analyst
Highlights
- In-line results despite soft core earnings. 1H26 net profit grew 1.7% yoy and accounted for 49% of our/consensus 2026 estimates, although 2Q26 PPOP declined 0.8% qoq.
- Defensive loan growth accelerated. Loans grew 8.0% yoy, led by corporate lending, while management maintained its 8-10% 2026 guidance and cautious underwriting in SME and auto loans.
Better 2H26 NII outlook supports BUY. Higher new-loan yields, strong CASA and late-2Q26 disbursements should support NIM in 2H26, while ample liquidity and manageable asset quality preserve BBCA’s defensive appeal. Maintain BUY; target price: Rp8,150.
Analysis
- Results in line, net profit inched up 1.1% qoq. Bank Central Asia’s (BBCA) 2Q26 net profit inched up 1.1% qoq (-0.7% yoy) to Rp14.9t, bringing 1H26 net profit to Rp29.5t (+1.7% yoy). 1H26 net profit is within our/market expectations, accounting for 49% of our/market full-year 2026 estimates. Core earnings remained soft, with pre-provision operating profit (PPOP) declining 0.8% qoq as operating income rose only 0.8% while opex increased 4.6%. Credit cost (CoC) dropped 20bp qoq, supporting the bottom line. Loan growth accelerated materially toward end-2Q26, booking 4.2% qoq (8% yoy) loan growth.
Highlights
- In-line results despite soft core earnings. 1H26 net profit grew 1.7% yoy and accounted for 49% of our/consensus 2026 estimates, although 2Q26 PPOP declined 0.8% qoq.
- Defensive loan growth accelerated. Loans grew 8.0% yoy, led by corporate lending, while management maintained its 8-10% 2026 guidance and cautious underwriting in SME and auto loans.
Better 2H26 NII outlook supports BUY. Higher new-loan yields, strong CASA and late-2Q26 disbursements should support NIM in 2H26, while ample liquidity and manageable asset quality preserve BBCA’s defensive appeal. Maintain BUY; target price: Rp8,150.
Analysis
- Results in line, net profit inched up 1.1% qoq. Bank Central Asia’s (BBCA) 2Q26 net profit inched up 1.1% qoq (-0.7% yoy) to Rp14.9t, bringing 1H26 net profit to Rp29.5t (+1.7% yoy). 1H26 net profit is within our/market expectations, accounting for 49% of our/market full-year 2026 estimates. Core earnings remained soft, with pre-provision operating profit (PPOP) declining 0.8% qoq as operating income rose only 0.8% while opex increased 4.6%. Credit cost (CoC) dropped 20bp qoq, supporting the bottom line. Loan growth accelerated materially toward end-2Q26, booking 4.2% qoq (8% yoy) loan growth.
BUY (Maintained)
Current price:
Target price:
Upside:
Rp6,275
Rp8,150
+29.9%
Analyst
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