CIMB Bank Central Asia Result note - Helped by non-recurring gains

(BBCA IJ / BBCA.JK, UNDERPERFORM - Maintained, Rp4,575 - Tgt. Rp4,700, Financial Services)

We maintain our Underperform rating on BCA with an unchanged target price of Rp4,700 (DDM valuation, discount rate 15.8%). 3Q09 core profit met our expectation. Nevertheless, we have raised our FY09 forecast by 5%, to incorporate non-recurring gains. With 5% qoq loan growth, BCA was finally able to close its chapter on loan contractions in the previous two quarters. Loads of effort would be needed to lift its asset growth, however, as its current strength on the liabilities side is unlikely to power profitability growth. As the priciest bank in Indonesia with few catalysts expected, BCA seems to have little scope to outperform the market notably, in our view.