JP Morgan - BBCA: Weak Results

At the PPOP level, 1Q profit was about 6% lower than our estimate. Based on comparable data provided by management, PPOP declined by 23% y/y. Management also indicated that G&A expenses rose by 25% y/y, although largely due to branch and ATM network expansion. Credit quality deteriorated by 20bp but remained well contained at 0.9%; coverage stood at 327%.