PT Bank Central Asia Tbk – Value Analysis (FRANKFURT:BZG2) : December 29, 2017

Capitalcube gives PT Bank Central Asia Tbk a score of 93.

Our analysis is based on comparing PT Bank Central Asia Tbk with the following peers – Skandinaviska Enskilda Banken AB Class A, Eurobank Ergasias SA, HSBC Trinkaus & Burkhardt KGaA and Piraeus Bank S.A. (SEBA-DE, EUROB-GR, TUB-DE and BKP6-DE).

Fundamental Overview

PT Bank Central Asia Tbk has a fundamental score of 93 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It currently trades at a Price/Book ratio of (3.97).
  • BZG2-DE outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • BZG2-DE has a successful operating model with relatively high net profit margins and capital turns.
  • Change in the company’s annual revenues seems to be coming at the expense of earnings.
  • BZG2-DE‘s return on equity currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • Compared with the peers chosen, BZG2-DE has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s level of equity capital investment seems appropriate to support the company’s growth.
  • BZG2-DE has the financial and operating capacity to borrow quickly.

Drivers of Margin

  • BZG2-DE‘s pre-tax margin suggests relatively low operating costs.
  • The company’s net interest income (net interest income/total revenues) of 75.64% is around peer median suggesting that BZG2-DE‘s lending operations does not benefit from any differentiating pricing advantage. However, BZG2-DE‘s pre-tax margin is more than the peer median (49.94% compared to 28.95%) suggesting relatively low operating costs.
  • The company’s proportion of fee based income (i.e. non interest income/total revenues) of 24.36% is around peer median. In addition, BZG2-DE‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 44.59x is also around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

PT Bank Central Asia Tbk engages in the provision of commercial banking and other financial services. Its banking products and services include deposits account, transaction banking, electronic banking, cash management, credit cards, bank assurance, credit facilities, bank guarantees, export-import facilities, foreign exchange facilities, and investment products. The company was founded on August 10, 1955 and is headquartered in Jakarta, Indonesia.