Credit Grows, Banking Shares Potentially Bright

Stock movement (Photo: dock. Antara)

JAKARTA - Shares of issuers in the banking sector have the potential to continue strengthening. This is in line with the prospect of credit growth which is still quite good in 2024.

In terms of growth, according to BCA Sekuritas Head of Research Andre Benas, the net profit contribution of the banking sector to the issuer's net profit in Indonesia still contributes the most.

"I'm not worried about net profit growth in the banking sector, because the prospects for credit growth are still quite good. In 2024, if our economy is fine-fine, we should still be able to grow," Andre said quoting Antara.

In addition to the banking sector, he said that several sectors have the potential to record positive performance this year, including toll road infrastructure, property, and telecommunication towers.

According to him, the benchmark interest rate which is projected to fall in 2024 will bring fresh air to the stocks that inhabit the sector.

"If we look at the performance in February 2024, which has started to perform, it's a toll road. We'll see that sectors related to interest rates are like communication, extraordinary performance," said Andre.

The same optimism was conveyed by Chief Economist of PT Bank Central Asia Tbk (BCA) David Sumual. According to him, the opportunity for growth in bank credit distribution is still wide open as the public demand is strengthened.

On the other hand, he reminded that economic conditions in 2024 will be more challenging than 2023, where Indonesia's economic prospects cannot be separated from global economic conditions.

However, he sees that the national economy will still be positive this year.

This year we can still grow by approximately 5 percent. We hope that in terms of investment 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.

BCA and its subsidiaries posted a net profit that grew 19.4 percent year on year (yoy) to reach IDR 48.6 trillion throughout 2023, supported by quality credit growth, increased transaction volume and funding, and expanding customer bases.