ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Adi Sarana Armada (ASSA IJ) - Auto Leasing, Logistics, and the Last Mile

Bank Central Asia – Poor Showing At Indo Bellweather

Bank Central Asia (BBCA IJ) - More Than Respectable

Bank Central Asia (BBCA IJ) - Liability Protection

Gravity Works As WeWork Doesn't; Now Plan B

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

A call with <a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> management revealed that loan growth continued to remain weak overall in 2020 but with some positive growth from corporate lending. 
Expectations are for some recovery in loan growth in 2021 but a lot depends on the roll-out of the COVID-19 vaccines and on the recovery in GDP growth. This is probably the key risk.
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> has been utilizing virtual channels and call centers to some success in order to stimulate mortgage and 4W consumer loans and will look to do a virtual expo for SMEs.
The bank is focusing on existing customers to push for higher utilization of credit lines from its SME and corporate customers. 
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> will book some further provisioning in 4Q2020 but the level should come down versus 3Q2020. Loans at risk will also remain stable and credit costs will likely finish the year at the lower end of the bank's guidance. 
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> is well-connected to the digital eco-system providing settlement services to all major players and top-ups for digital wallets. 
The bank's own digital initiatives also continue to bear fruit, with increasing numbers of customers taking to mobile banking through increased transactions and account opening.
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> continues to demonstrate its ESG credentials, with around 20% of its loan book covering sustainable sectors.
The bank trades on 4.2x FY21E PBV, with a forecast ROE of 15.8% in FY21E and 16.9% in FY22E, and will continue to trade at a premium to peers listed below on its strong management track record and lead in transactional banking.

A call with Bank Central Asia (BBCA IJ) management revealed that loan growth continued to remain weak overall in 2020 but with some positive growth from corporate lending. 
Expectations are for some recovery in loan growth in 2021 but a lot depends on the roll-out of the COVID-19 vaccines and on the recovery in GDP growth. This is probably the key risk.
Bank Central Asia (BBCA IJ) has been utilizing virtual channels and call centers to some success in order to stimulate mortgage and 4W consumer loans and will look to do a virtual expo for SMEs.
The bank is focusing on existing customers to push for higher utilization of credit lines from its SME and corporate customers. 
Bank Central Asia (BBCA IJ) will book some further provisioning in 4Q2020 but the level should come down versus 3Q2020. Loans at risk will also remain stable and credit costs will likely finish the year at the lower end of the bank's guidance. 
Bank Central Asia (BBCA IJ) is well-connected to the digital eco-system providing settlement services to all major players and top-ups for digital wallets. 
The bank's own digital initiatives also continue to bear fruit, with increasing numbers of customers taking to mobile banking through increased transactions and account opening.
Bank Central Asia (BBCA IJ) continues to demonstrate its ESG credentials, with around 20% of its loan book covering sustainable sectors.
The bank trades on 4.2x FY21E PBV, with a forecast ROE of 15.8% in FY21E and 16.9% in FY22E, and will continue to trade at a premium to peers listed below on its strong management track record and lead in transactional banking. 

Bank Central Asia (BBCA IJ) - Sustainable Virtual Recovery Ahead