Jakarta, 5 March 2024 - Banking issuers are predicted to continue positive performance in 2024, even though this year is full of challenges. BCA Head of Research Sekuritas Andre Benas said, banking issuers have the opportunity to continue the trend of high net profit as happened in 2023.
"For banking-specific stocks in 2024, in terms of growth, the banking sector's net profit contribution to the net profit of issuers in Indonesia must contribute the most. I am not worried about the growth of net profit in the banking sector because the prospects for credit growth are still quite good. In 2024, if our economy is fine, we should still be able to grow," said Andre Benas during the BCA Expoversary 2024 mini studio session titled "Economic Outlook 2024: Investment Opportunities in the Middle of World Turmoil" at ICE BSD, Tangerang.
The same optimism was delivered by Chief Economist of PT Bank Central Asia Tbk (BCA) David Sumual. According to him, the opportunity for lending growth is still wide open, especially if public demand strengthens.
Andre said the events such as BCA Expoversary 2024, which offers various special promos can provide positive sentiment to the shares of banking issuers. At BCA Expoversary 2024, BCA provides attractive offers such as BCA KPR interest rate of 2.67% eff.p.a. fixed 1 year with 10% life insurance discount and 50% administration fee discount; special interest rate for motorcycle loans of 2.67% flat p.a. tenor of 1 year; and 0% DP program for motor vehicle loans and BCA motorcycle loans.
"If one day, BCA announces the credit achievements of BCA Expoversary 2024 at a trillion, investors will know that the banking sector is still performing well. The hope is that with the BCA Expoversary 2024, people will know that BCA is contributing to the growth of the IHSG in the future," said Andre.
Besides banking, Andre said several sectors have the potential to record positive performance this year, such as toll road infrastructure, property, and telecommunication towers. According to him, the benchmark interest rate, which is projected to fall in 2024, brings fresh air to stocks that inhabit the sector.
"So if last year the toll road, tower infrastructure, and property sectors were still underperforming. Maybe the hope is that in 2024, if the interest rate drops, these sectors can perform. If we look at the performance in February, the toll road has started to perform. We see sectors related to interest rate sensitive, such as communication, the performance is extraordinary," he said.
BCA Chief Economist David Sumual said that Indonesia's economic prospects are inseparable from global economic conditions. According to him, compared to 2023, economic conditions in 2024 will be more challenging. However, he still views that the national economy will still be positive this year.
"This year we can still grow by approximately 5%. We hope that from the investment side there are many other factors that we pay attention to. We are cautiously optimistic this year. The consumption sector is also quite good. Its behavior this year is relatively better," said David.
PT Bank Central Asia Tbk (IHSG: BBCA) and its subsidiaries booked a net profit growth of 19.4% YoY to reach Rp48.6 trillion throughout 2023. This increase was supported by quality credit growth, increased transaction volume and funding, and expansion of the customer base.
Photo Caption:
Positive Signals for Banking Issuers - BCA Chief Economist David Sumual (center) and BCA Sekuritas Head of Research Andre Benas (right) at the BCA Expoversary 2024 mini studio session titled "Economic Outlook 2024: Investment Opportunities Amid World Turmoil" at ICE BSD, Tangerang. Banking issuers are predicted to continue their positive performance in 2024, despite this year's challenges. Banking issuers have the opportunity to continue the trend of high net profit as happened in 2023.
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About PT Bank Central Asia Tbk (per 31 December 2023)
BCA is one of the leading commercial banks in Indonesia with the core business of transaction banking. BCA also offers a full range of financial services in consumer, SME, commercial and corporate segments. As of December 2023, BCA has the privilege of serving nearly 38 million customer accounts, processing around 82 million of daily transactions through a network of 1,258 branches; 19,047 ATMs as well as the 24-hour internet & mobile banking systems; supported by 24/7 Halo BCA contact center. BCA’s presence is complemented by a number of subsidiaries focusing on vehicle financing, sharia banking, securities, general and life insurance, digital bank, remittance as well as venture capital business. BCA is committed to building lasting relationship with customers, putting people first, and making positive impact on society at large. With around 27,000 employees, BCA’s vision is to be the bank of choice and a major pillar of the Indonesia economy.
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