CLSA BCA (BBCA IJ) – Slightly weak but in line by Bret

Lukewarm results from BCA. While net profit net profit increased 18% YoY to Rp1.9tn and was 22% of Bret’s forecast, on an adjusted basis, this number was 17% of 2010CL projection.

Loan growth was weak at -2% QoQ but should pick up in the next quarters as there is a seasonal component to it. Weaker loan growth mostly came from the corporate segment. The bank has done well in its mortgage portfolio, now commanding a 12.1% market share, just behind CIMB Niaga. Mortgages are growing fast but still represents only about 12% of the total loan portfolio.

While BCA is trading at 20% PE premium to their Asian peers but ROE and ROA at 29% and 2.9% respectively are also 97% and 147% higher. Maintain BUY.