BBCA Stock Could Rise 38% Despite Weaker April Performance
Main Takeaways
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JAKARTA, Investortrust.id — PT Bank Central Asia Tbk could see its share price climb 38.4% to Rp 11,900 (approximately $0.79) from Rp 8,600 as of Thursday, Jul. 10, 2025, even though its April earnings weakened, according to BRI Danareksa Sekuritas, underscoring significant upside for investors.
Bank Rakyat Indonesia’s securities arm, BRI Danareksa Sekuritas, said its buy recommendation was driven by BBCA’s stable credit metrics, operational efficiency and still-robust growth potential.
April Performance Details
BRI Danareksa found that BBCA’s net profit in April 2025 fell 33% month-on-month and 8% year-on-year to Rp 4.5 trillion (about $300 million), primarily because the bank did not record any dividend income that month.
The bank’s net interest margin eased to 5.8% as yields declined and funding costs rose, while the cost of credit remained controlled at 0.6%, in line with seasonal patterns, the report added.
BBCA’s cost-to-income ratio moved higher to 29% after operating expenses held at Rp 2.5 trillion and revenues dipped, reflecting a temporary efficiency drag.
Meanwhile, loan disbursements grew 1% month-on-month (13% year-on-year), whereas third-party deposits fell 2% month-on-month (4% year-on-year). As a result, the loan-to-deposit ratio rose to 80% in April 2025.
Analysts noted that although April’s results showed some strain—particularly from elevated funding costs and weaker deposit growth—the underlying credit quality and seasonal trends support a positive outlook for BBCA.
BRI Danareksa maintained its buy rating with a target price of Rp 11,900 on a bank-only valuation basis, emphasizing BBCA’s resilient franchise and growth avenues in retail and corporate lending.