Analisa Saham BJBR oleh RHB Sekuritas | 29 Juli 2020

Bank Jabar : Limited Disruption To Payroll Loans; U/G to BUY; TP: IDR1,215

Ghibran Al Imran, Andre Benas, Shelly Setiadi - RHB Sekuritas Indonesia

Link to report: https://bit.ly/39C2dLq

Earnings strongly beat estimates. Bank Jabar’s IDR392bn 2Q20 earnings (-5.7% QoQ, +3.6% YoY), which brings 6M20 earnings to IDR808bn (+1.1% YoY), were above our and Street estimates at 64% and 60% of FY20F, coming from lower-than-expected provision expenses, which came from managed asset quality. This is largely due to its defensive payroll and pension based loans 

Loan growth still robust, even with sector’s low demand. The current 9.3% YoY loan growth surpassed Management’s 4-5% target. This was largely driven by the consumer (+7.8% YoY, 68% of total loans)

Asset quality intact; the best among peers during pandemic. NPL was seen slightly improving to 1.6% (1Q20: 1.65%, 2Q19: 1.7%) and restructured loans only amounted to IDR4trn or 4.8% of total loans – the lowest among peers

Upgrade to BUY with IDR1,215 TP,* set at 0.8x FY21F P/BV at -1SD to its 5-year mean, on the back of outstanding results and defensive customer base