Kiwoom Research | 9M26 Equity Update - 02 November 2026 PT. Bank Central Asia Tbk. (BBCA) Stronger 9M26 Lending Supports Earnings Recovery Key Takeaways: - 9M26 Earnings Momentum Improved. BBCA recorded net profit of IDR 45.2tn (+4.2% YoY), supported by PPOP growth of 2.5% YoY. Quarterly earnings rose 5.6% QoQ to IDR 15.7tn, while bank-only NIM recovered to 5.6% in 3Q26. - Business Lending Drove Loan Growth. Total loans reached IDR 1,063.1tn (+12.6% YoY), led by corporate lending at IDR 528.1tn (+20.9% YoY) and SME loans (+15.4% YoY), while consumer lending remained softer due to weaker vehicle financing. - Strong CASA Supports Fundamentals. CASA increased 10.4% YoY to IDR 1,103.2tn, reinforcing BBCA's low-cost funding advantage. Asset quality also improved, with bank-only gross NPL declining to 1.8% and LAR easing to 4.6%. Recommendation: "BUY" We maintain our "BUY" rating on BBCA. Our valuation is derived through a blended approach, combining 60% P/BV and 40% DDM. We revise our 12-month target price to IDR 7,150 (from IDR 8,075), implying 43.57% upside from the last closing price of IDR 4,980 on 30 October 2026. The revision mainly reflects more conservative valuation assumptions, particularly a lower terminal growth rate of 5.0%, rather than a weakening of underlying earnings fundamentals. Downside risks include renewed NIM pressure, weaker-than-expected loan growth, higher funding costs, and weaker asset quality. Kevin Yudha Pratama Equity Research KIWOOM SEKURITAS INDONESIA