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BBCA: Solid 9M18 Result, The Most Defensive Stock Pick
05 Nov 2018

BBCA: Solid 9M18 Result, The Most Defensive Stock Pick

BBCA managed to maintain its NPL at low level of 1.4% in 3Q18 which was far below from NPL’s banking industry at 2.7% as of August 2018 driven by NPL improvement from corporate and commercial segments. Meanwhile, the company’s NII and net profit in 9M18 came in-line with our expectation which formed 75% to 2018 projection. We view that BBCA is the most defensive stock in our banking universe which has rallied by 10% (YTD 2018) and traded at 3.51x PBV 2019F, contrary to the recent correction of banking sector supported by ample liquidity ratio, low NPL level and the most efficiency banks, hence, we reiterate with BUY rating on the counter.

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