DB:BZG2

Stock Analysis Report

Bank Central Asia

Executive Summary

PT Bank Central Asia Tbk provides banking products and services to individual, corporate, and small and medium enterprise customers in Indonesia and internationally.

Rewards

Earnings are forecast to grow 12.22% per year

Earnings grew by 13.2% over the past year

Pays a reliable dividend of 0.99%

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Bank Central Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BZG2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

BZG2

-5.0%

DE Banks

0.7%

DE Market


1 Year Return

26.1%

BZG2

-13.5%

DE Banks

15.6%

DE Market

Return vs Industry: BZG2 exceeded the German Banks industry which returned -4.5% over the past year.

Return vs Market: BZG2 exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

BZG2IndustryMarket
7 Day-1.8%-5.0%0.7%
30 Day2.8%-3.5%1.7%
90 Day13.3%-1.3%6.3%
1 Year27.7%26.1%-10.7%-13.5%19.2%15.6%
3 Year123.7%116.0%-23.0%-26.8%18.3%7.9%
5 Year159.3%144.2%-0.9%-24.9%26.8%9.4%

Price Volatility Vs. Market

How volatile is Bank Central Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank Central Asia undervalued compared to its fair value and its price relative to the market?

29.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BZG2 (€2.26) is trading above our estimate of fair value (€1.54)

Significantly Below Fair Value: BZG2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BZG2 is poor value based on its PE Ratio (30x) compared to the Banks industry average (17x).

PE vs Market: BZG2 is poor value based on its PE Ratio (30x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: BZG2 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BZG2 is overvalued based on its PB Ratio (5x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Bank Central Asia forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZG2's forecast earnings growth (12.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: BZG2's earnings (12.2% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: BZG2's earnings are forecast to grow, but not significantly.

Revenue vs Market: BZG2's revenue (10.6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: BZG2's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZG2's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Bank Central Asia performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZG2 has a high level of non-cash earnings.

Growing Profit Margin: BZG2's current net profit margins (43.4%) are higher than last year (42.6%).


Past Earnings Growth Analysis

Earnings Trend: BZG2's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: BZG2's earnings growth over the past year (13.2%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: BZG2 earnings growth over the past year (13.2%) exceeded the Banks industry 3.9%.


Return on Equity

High ROE: BZG2's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bank Central Asia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BZG2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: BZG2's debt is covered by short term assets (assets are 30.4x debt).


Financial Institutions Analysis

Asset Level: BZG2's level of assets compared to its equity is low.

Allowance for Bad Loans: BZG2 has a sufficient allowance for bad loans.

Low Risk Liabilities: BZG2's liabilities are made up of primarily low risk sources of funding.

Loan Level: BZG2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BZG2's loans are broadly funded by customer deposits.

Level of Bad Loans: BZG2 has an appropriate level of bad loans (1.34%)


Next Steps

Dividend

What is Bank Central Asia's current dividend yield, its reliability and sustainability?

0.99%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: BZG2's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: BZG2's dividend (0.99%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: BZG2's dividends per share have been stable in the past 10 years.

Growing Dividend: BZG2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), BZG2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BZG2's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

What is the CEO of Bank Central Asia's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Jahja Setiaatmadja (63yo)

8.6yrs

Tenure

0

Mr. Jahja Setiaatmadja has been the President Director of PT Bank Central Asia Tbk (“BCA”) since June 7, 2011. He previously served as Deputy President Director of BCA (2005–2011), his latest responsibilit ...


Management Age and Tenure

6.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BZG2's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BZG2's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jahja Setiaatmadja (63yo)

    President Director

    • Tenure: 8.6yrs
  • Suwignyo Budiman (68yo)

    Deputy President Director & Director of Individual Banking

    • Tenure: 0.8yrs
  • Inawaty Suwardi (67yo)

    Director of Compliance

    • Tenure: 3.4yrs
  • Wira Chandra (54yo)

    Executive Vice President of Group Corporate Banking & Corporate Finance

    • Lianawaty Suwono (52yo)

      Director of Human Capital Management & Director

      • Tenure: 3.5yrs
    • Raymon Yonarto

      Executive VP and Head of Finance & Corporate Planning Division

      • Lay Santoso

        Head of Corporate Finance Group

        • Mira Wibowo

          Head of Transaction Banking Business Development & Marketing Division

          • Hendra Tanumihardja (46yo)

            Head of Human Capital Management Division

            • Tenure: 3.4yrs
          • Gunewan Ruslie

            Head of Finance & Accounting


            Board Members

            • Jahja Setiaatmadja (63yo)

              President Director

              • Tenure: 8.6yrs
            • Suwignyo Budiman (68yo)

              Deputy President Director & Director of Individual Banking

              • Tenure: 0.8yrs
            • Inawaty Suwardi (67yo)

              Director of Compliance

              • Tenure: 3.4yrs
            • Rudy Susanto (56yo)

              Corporate Banking Director & Director

              • Tenure: 5.5yrs
            • Armand Hartono (43yo)

              Deputy President Director

              • Tenure: 3.6yrs
            • Erwan Ang (59yo)

              Director of Regional & Branch Networks and Independent Director

              • Tenure: 8.4yrs
            • Henry Koenaifi (59yo)

              Director of SME & Commercial Banking and Director

              • Tenure: 13yrs
            • Lianawaty Suwono (52yo)

              Director of Human Capital Management & Director

              • Tenure: 3.5yrs
            • Charles Santoso (53yo)

              Director of Transaction Banking & Director

              • Tenure: 3.4yrs
            • Vera Lim (53yo)

              Finance Director

              • Tenure: 1.8yrs

            Company Information

            PT Bank Central Asia Tbk's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: PT Bank Central Asia Tbk
            • Ticker: BZG2
            • Exchange: DB
            • Founded: 1955
            • Industry: Diversified Banks
            • Sector: Banks
            • Market Cap: Rp842.585t
            • Listing Market Cap: Rp55.775b
            • Shares outstanding: 24.66b
            • Website: https://www.bca.co.id

            Number of Employees


            Location

            • PT Bank Central Asia Tbk
            • Menara BCA
            • Grand Indonesia
            • Jakarta
            • 10310
            • Indonesia

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            BBCAIDX (Indonesia Stock Exchange)YesCommon SharesIDIDRMay 2000
            PBCR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2000
            BZG2DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2000
            PBCR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2012

            Biography

            PT Bank Central Asia Tbk provides banking products and services to individual, corporate, and small and medium enterprise customers in Indonesia and internationally. It offers deposits accounts, loans, transaction banking services, electronic banking services, cash management services, credit cards, bancassurance products, mutual fund investment products, fixed income investment products, credit facilities, standby LC/bank guarantees, export import facilities, local LC, and foreign exchange facilities. The company also provides investment financing, working capital financing, multipurpose financing, operating lease, other financing activities, money lending and remittance, securities brokerage dealer and securities issuance underwriting, general or loss insurance, life insurance, and venture capital services. It operates 1,235 branch offices comprising 136 main branches, 856 sub-branches, and 243 cash offices; 17,658 automated teller machines; and approximately 470,000 electronic data capture machines. PT Bank Central Asia Tbk was founded in 1955 and is headquartered in Jakarta, Indonesia. PT Bank Central Asia Tbk is a subsidiary of PT Dwimuria Investama Andalan. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/20 21:43
            End of Day Share Price2020/01/20 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.