Tags: BBRI

Limited impact from ATM fee hike

Sep 12, 2014 - Indo - 0 Comments - Standard

The Jakarta Post reported that the banks would raise the charges for interbank transfer, cash withdrawal and balance inquiry transactions via ATM Bersama, Prima and Link networks by 33-50% (but not for internal transactions) in Oct-Nov 2014. We estimate that there would be a less than 3% positive impact on the banks’ net profit, with […]

BBRI: Migrating credit cards to national chip standard starting 2015

Sep 10, 2014 - Indo - 0 Comments - Standard

BBRI: Migrating credit cards to national chip standard starting 2015. Bank Indonesia’s network has been certified by the onshore standards provider, Citra Bakti Indonesia, however the bank believes the process for the system has started late and may be delayed. All new cards are being provided with chips, and the bank has 14m credit cards. […]

BBRI: Back to basic banking

Sep 08, 2014 - Indo - 0 Comments - Standard

BBRI has been expanding its micro banking division, which we believe will be the growth driver in the future. Given its low problem loans in the segment, BRI should be able to increase earnings based on this micro lending. We upgrade 2014 earnings forecast by 4% and keep Buy rating with revised TP of Rp13,000. […]

Improving mortgage availability

Sep 04, 2014 - Indo - 0 Comments - Standard

BCA reduced mortgage rate by 25bps Bisnis Indonesia reported that BCA plans to reduce its mortgage rate by 25bps in September 2014 (its existing rate is at around 9.9% fixed 3 years). The plan for lower mortgage rate came post BCA’s cut on its special TD rate by as much as 75bps from its peak […]

BBRI: Back to basic banking

Sep 04, 2014 - Indo - 0 Comments - Standard

BBRI has been expanding its micro banking division, which we believe will be the growth driver in the future. Given its low problem loans in the segment, BBRI should be able to increase earnings based on this micro lending. We upgrade 2014 earnings forecast by 4% and keep Buy rating with revised TP of Rp13,000. […]

New telecommunication satellite, BRIsat, in mid-2016

Sep 03, 2014 - Indo - 0 Comments - Standard

New telecommunication satellite, BRIsat, in mid-2016. BRI menandatangani perjanjian dengan Space Systems/Loral (SSL) dari US and Arianespace of France untuk merakit satelit dan akan meluncurkannnya pada pertengahan 2016. BRI memprediksi satelit itu akan menelan investasi senilai US$250 juta-US$300 juta, yang akan didepresiasi selama 15 tahun. Mereka juga memproyeksikan keberadaan satelit itu akan menghemat 50% beban […]

Banking: June 2014 banking data – sign of improvement?

Aug 29, 2014 - Indo - 0 Comments - Standard

Pertumbuhan kredit berlanjut melambat menjadi 17,2% YoY, sedangkan nilai simpanan naik 13,6% YoY, sehingga membentuk rasio kredit terhadap simpanan (LDR) sebesar 90,4% untuk Juni. Meskipun pinjaman bermasalah masih meningkat, yaitu sebesar 35% YoY, rerata pinjaman tidak lancar (NPL) turun menjadi 2,16% pada Juni dari 2,18% pada Mei. Kami masih menetapkan kembali rekomendasi sektor perbankan pada […]

June 2014 banking data – sign of improvement?

Aug 27, 2014 - Indo - 0 Comments - Standard

Loan growth continued to slowdown to 17.2% y-y while deposits has started to increase at 13.6% y-y, leading to 90.4% LDR in June 2014. Despite the rising problem loans value, which increased 35% y-y, the NPL level declined to 2.16% in June from 2.18% in May 2014. Maintain Neutral on banks with BRI as our […]

NPLs grew 35% YoY in June

Aug 27, 2014 - Indo - 0 Comments - Standard

Deposits grew 14% YoY, backed by 19% YoY growth in time deposits Bank Indonesia (BI) released its June 2014 statistics. System deposit growth improved to 14% YoY and 5% year-to-June, a significant 89% of which was contributed by expensive time deposits compared with their 51% contribution to FY13 growth. Savings shrank 4% year-to-June. Outlook: We […]

Banks: Big is beautiful?

Aug 27, 2014 - Indo - 0 Comments - Standard

Talk of creating larger SOE banks via consolidation is back in vogue. We think this is sensible amid tight liquidity and slowing loan growth. Cost savings and synergy could be extracted but historically, politics has been the stumbling block. To ease the anxiety, it may start small. We view BTN as the most likely target […]

Map of consolidation for the banks is complete

Aug 26, 2014 - Indo - 0 Comments - Standard

Map of consolidation for the banks is complete. The SOE ministry notes it will consolidate the SOE banks according to its plans and then consolidate the Sharia banks second after this is complete. The banks have been made aware of these plans (BBRI, BMRI, BBNI, BBTN) however the representative from the ministry could not disclose […]

One more player to focus on pensioners segment in 2015

Aug 26, 2014 - Indo - 0 Comments - Standard

Bank Mandiri (BMRI) plans to focus on loans to pensioners through its subsidiary Bank Sinar Harapan Bali (BSHB) starting 2015. We think the early years contribution to BMRI will be marginal, considering numbers of pensioners is not expected to grow in the next couple of years as the government extend retirement age for civil servants. […]

BBRI targets satellite launch will take place in 2Q16

Aug 20, 2014 - Indo - 0 Comments - Standard

BBRI targets satellite launch will take place in 2Q16. Currently, BBRI is still completing construction in Pasar Minggu, Jakarta Selatan. BBRI allocated USD 250mn for the procurement of these satellites. This satellite has 15 years usage period with 54 transponders, where 4 transponder will be used by the Government. With this satellite, BBRI claims will […]

Dahlan want to push banking consolidation

Aug 20, 2014 - Indo - 0 Comments - Standard

Dahlan want to push banking consolidation. Minister of SOE points out that the consolidation make sense but he won’t have time to carry the changes as his tenor is only 2 months left. Dahlan points out that the end of majority of BBNI directors’ tenor as the prime time for banking consolidation despite potential objections […]

BBRI – Roadshow feedback

Aug 20, 2014 - Indo - 0 Comments - Standard

Link to note here: · We hosted BBRI for an NDR to UK/Europe last week, meeting ~50 funds. Interest was strong following the favourable presidential election outcome. · The number one concern from investors centered on the bank’s LDR, which at 94% is above its peer group. BBRI targets a 92% LDR ratio by year […]

Banking – three state banks launched EDC Link

Aug 19, 2014 - Indo - 0 Comments - Standard

Three state banks, BMRI, BBRI and BBNI, launched the shared electronic data capture (EDC) Link, which will ease the noncash transactions for merchants through this electronic banking. Altogether the three banks have around 50m customers and they control around 48% share in EDC market or around 310,000 units

Banking – deposit rates started to decline

Aug 16, 2014 - Indo - 0 Comments - Standard

Perbankan mulai memangkas bunga untuk simpanan dengan jumlah besar yang sebelumnya diberikan, sejalan dengan kondisi likuiditas di sistem perbankan saat ini yang sudah lebih baik. PT Bank Central Asia Tbk (BBCA) telah memangkas suku bunga deposito senilai Rp25 miliar sebesar 25 bps menjadi 9% dan berencana memangkas lagi suku bunga yang sama bulan depan. Suku […]

Indonesian Banking Update: Possible new banking proposals for growth

Aug 14, 2014 - Indo - 0 Comments - Standard

There is market talk that banking reforms could be implemented to create sounder and more conducive industry growth while concurrently establishing a more level playing field for all Indonesian commercial banks. § Potential lower government ownerships in banks to spur growth: In order to enable state-owned banks to be more competitive, the government may further […]

BBRI continues with its acquisition plan

Aug 12, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia’s (BBRI) plan to acquire financial companies is still ongoing, with IDR3t has been allocated to secure the deals. BRIngin Life (not listed, an affiliated insurance company controlled by the bank’s pension fund) and Asuransi Jiwasraya (not listed, a State-owned insurance company) are among the names in its target list. We think the […]

BBRI continues with its acquisition plan

Aug 08, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia’s (BBRI)  plan to acquire financial companies is still ongoing, with IDR3t has been allocated to secure the deals. BRIngin Life (not listed, an affiliated insurance company controlled by the bank’s pension fund) and Asuransi Jiwasraya (not listed, a State-owned insurance company) are among the names in its target list. We think the […]

Konsolidasi bank BUMN

Aug 07, 2014 - Indo - 0 Comments - Standard

Konsolidasi bank BUMN – kementerian BUMN tengah merumuskan rencana konsolidasi bank BUMN untuk menghadapi Masyarakat Ekonomi Asean 2020. nantinya diharapkan hanya ada 2 bank BUMN sebelum tahun 2020, terdiri dari bank yang fokus atas kredit korporasi, dan bank yang fokus pada kredit mikro. 4 BUMN saat ini BMRI, BBNI, BBRI, BBTN. melihat berita tersebut, kemungkinan […]

BBRI: Good set of results

Jul 24, 2014 - Indo - 0 Comments - Standard

BBRI reported Rp11.7tr consolidated net profit in 1H14 (+16% y-y), translating into Rp5.8tr (+15% y-y) in 2Q14. The results account for 53% of our full year expecation and 49% of consensus’. Continued loan in micro segment helped support the earnings. We maintain our Buy call with TP of Rp12,850. Loan growth of 17% y-y in […]

BBRI: interim results within expectations

Jul 23, 2014 - Indo - 0 Comments - Standard

BBRI reported Rp11.7tr consolidated net profit in 1H14 (+16% y-y). translating into Rp5.8tr (+15% y-y) in 2Q14. This is slightly better than our expectation (53% of our full year earnings estimate) but within the consensus’. Continued increase in micro lending and managed asset quality helped boost the bank’s income. „ Loan growth was 17% y-y […]

BBRI: Margin and asset quality deteriorate, cost control saves the day

Jul 23, 2014 - Indo - 0 Comments - Standard

Bank Rakyat (BBRI) reported 2Q net profits of Rp5.8tn, down 2% q/q, up 15% y/y, in-line with consensus and 8% above our estimates. While net interest income and non-II were broadly in line, the beat came from better cost control (-3% q/q and 7% below JPMe). Margin contraction (-26bps q/q) and higher credit costs (+78bps […]

BBRI mencatat laba bersih tumbuh 17,1% menjadi Rp11,7 triliun

Jul 23, 2014 - Indo - 0 Comments - Standard

BBRI mencatat laba bersih tumbuh 17,1% menjadi Rp11,7 triliun, sesuai dengan perkiraan kami sebelumnya yang sebesar Rp11,4 triliun, mencapai 47% dari target laba 2014 kami, dan 49% dari target konsensus. Kredit tumbuh 17,2% dan DPK 11,3 membuat NIM naik dari 8,08% menjadi 8,93%. Kedepan, agar pertumbuhan laba ini dapat berkelanjutan, pertumbuhan DPK harus didorong untuk […]

ONE INDONESIA

Jul 23, 2014 - Indo - 0 Comments - Standard

We voted for two different presidential candidates, but we will move forward as ONE INDONESIA. Our national motto Bhinneka Tunggal Ika (Unity in Diversity) will stand. Indonesia will once again show the world that we can deliver a good and respective democracy election. We reiterate our bullish view on long term prospects of Indonesia despite […]

BANKING – 2Q Result Estimation

Jul 21, 2014 - Indo - 0 Comments - Standard

Musim laporan keuangan telah tiba, minggu depan 5 bank dalam cakupan analisa kami akan melakukan publikasi laporan keuangan. Dari hasil proyeksi laba bersih kuartal 2 2014, kami memperkirakan BBCA memiliki pertumbuhan laba paling tinggi sebesar 26%, diikuti oleh BBNI 15%, BMRI 13%, BBRI 12%, dan BBTN 1%. Kami masih mempertahankan target harga sebelumnya, sambil menunggu […]

Artha Graha and BRI compete to purchase Bank Mutiara

Jul 18, 2014 - Indo - 0 Comments - Standard

Artha Graha and BBRI compete to purchase Bank Mutiara. There are 6 investors in the race to purchase the bank from the deposit insurance corporation, LPS, with final bids due August 21st. Besides the 2 local bidders, there are 4 additional groups from Japan, Hong Kong, Malaysia and Singapore.

Banking: Tight liquidity remains in the short term

Jul 16, 2014 - Indo - 0 Comments - Standard

Indonesian banks are entering into an adjustment period with higher interest rates and problem loans. However, we believe the industry will again pass this predicament despite the slowdown in lending and earnings growth. While we are NEUTRAL on the sector we suggest BRI as our top pick. „ Liquidity to remain tight in 3Q14. With […]

Banks: Firming up control

Jul 15, 2014 - Indo - 0 Comments - Standard

Jakarta Post reported that the regulator may limit foreign ownership in banks to a 40% maximum (not retroactive) as early as 30 Sep 14 and require foreign banks’ Indonesian branches to operate as Perseroan Terbatas (PTs) rather than branches, potentially reducing interoffice fund-flow flexibility with their foreign-based parents. The regulation may reduce the attractiveness of […]

BBRI plans IDR3tn bond issuance in 2015 for more loans

Jul 14, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia’s (BBRI) plans to issue around IDR3tn worth of debt next year to secure funds for its credit expansion plans amid a tight liquidity environment. BRI Finance Director Achmad Baiquni stated that the bank felt the need to raise funds from debt market as it foresaw that liquidity would remain tight until the […]

BBRI assumes control of BRI 2 office tower, leading to expected Rp5t revenues over 5 years

Jul 11, 2014 - Indo - 0 Comments - Standard

BBRI assumes control of BRI 2 office tower, leading to expected Rp5t revenues over 5 years. The bank’s management was finally able to enforce a court order returning the building to BRI ownership after a build, own, operate, transfer agreement. The original agreement dates back to 1992 and the issue has been in dispute since […]

Jakarta’s acting governor, Ahok, plans to suppress illegal levies on street merchant

Jul 08, 2014 - Indo - 0 Comments - Standard

Jakarta’s acting governor, Ahok, plans to suppress illegal levies on street merchant. The Jakarta’s government will require street merchants to be registered and have bank accounts that will automatically charge levies from. Ahok plans to use Bank DKI (Jakarta’s local government bank) or BRI (BBRI) for this program. Starting this month (July 2014), Jakarta’s government […]

BBRI allocates Rp3tr on acquisition

Jul 06, 2014 - Indo - 0 Comments - Standard

PT Bank Rakyat Indonesia Tbk (BBRI) allocates Rp3tr on acquisition. BBRI mengalokasikan Rp3 triliun untuk investasi guna menciptakan pertumbuhan anorganik. Saat ini perseroan sedang mengikuti due diligence dari akuisisi PT Bank Mutiara Tbk (BCIC) dan dua perusahaan asuransi.

Half Full or Half Empty? A Dive into Indonesian Liquidity

Jul 02, 2014 - Indo - 0 Comments - Standard

Concerns regarding Indonesian liquidity, the fiscal deficit and external sectors are intertwined, in our view. Our analysis concludes that current liquidity tightness can be traced to lower quality government spending, which has gone from generating 40% of money supply pre-GFC to 8% currently. Seasonal and cyclical factors should contribute to better liquidity in 2H FY14E. […]

Indonesia Deposit Insurance Corporation can cover 40 small banks’ deposits

Jul 01, 2014 - Indo - 0 Comments - Standard

Indonesia banks LDR remains high at 91% in April 2014. We have expected this tight liquidity condition in Indonesia banks to hit the smaller banks first, and might lead to some banks closing down its business. Nevertheless, the impact of such closure to the sector’s stability should be minimum as Indonesia Deposit Insurance Corporation (LPS) […]

Banking – NPL Hikes, Prefer Good NPL Banks – BUY BBCA & BMRI

Jun 26, 2014 - General - 0 Comments - Standard

Data BI per April 2014 menunjukkan kredit macet mengalami tren naik sejak awal tahun. Rasio kredit macet (NPL) bergerak dari 1,90% di Januari menjadi 2,05% di April. Oleh karena itu, bank akan lebih berhati-hati dan selektif dalam menyalurkan kredit baru, sehingga kami memprediksi pertumbuhan kredit akan terus melambat ke level 15-17% yoy, dari April yang […]

Bank: Bond yields and politics

Jun 23, 2014 - Indo - 0 Comments - Standard

Banks have outperformed, driven by external positive developments and supported by improving domestic fundamentals. Both have turned for the worse of late, with noisy politics and imminent elections exacerbating the downside risks. While the spread between Indonesian and US Treasury bonds remains attractive and exchange-rate risks are low compared to last year, these were offset […]

Deposit rates; race to the top

Jun 20, 2014 - Indo - 0 Comments - Standard

Without the necessary loan slowdown, TD rates will go higher Unless we see a reduction in loan growth, TD rates may continue to go up. Post 1Q14 results, overall liquidity in the system has tightened again resulting into rising TD rates. Government’s accelerated debt issuances (at 65% of target FY14 issuance vs 44% for same […]

Indonesian Banks: Impact of widening budget deficit

Jun 20, 2014 - Indo - 0 Comments - Standard

Widening fiscal deficit – crowding out domestic liquidity FY14 primary bond issuance that is 30% higher due to widening subsidies, a backloading strategy for issuance and the highest-ever foreign ownership level of bonds is not a good combination for bond prices. This is not good for banking sector valuation and is pointing toward likely further […]

BBRI: Stronger foothold in micro lending

Jun 16, 2014 - Indo - 0 Comments - Standard

BBRI akan mampu menjaga margin tinggi karena ekspansi pada kredit mikro perusahaan yang terjadi sejak 3 tahun terakhir. Posisi perusahaan akan sangat baik karena kedua calon pemimpin pemerintahan baru sama-sama berencana memperbaiki sektor agrikultur serta UMKM. Meskipun kami merevisi prediksi laba emiten, TP kami naikkan menjadi Rp12.100 dan tetap menjaga rekomendasi BUY. *** Micro loans […]

BBRI: Micro but magnificent

Jun 11, 2014 - Indo - 0 Comments - Standard

Upcoming rural economic initiatives to strengthen micro segment With the largest and long-standing experience in micro financing, BBRI would be the main beneficiary from the upcoming political agenda of aggressive promotion in rural economic initiatives, irrespective of who would become the next Indonesian president. Supported by 5,144 BRI Units, 2,208 Teras BRI and 465 Teras […]

Indonesia Presidential Debate 1 – The Big Debate

Jun 11, 2014 - Indo - 0 Comments - Standard

Please see below summary of 1st Debate. The 2nd Debate on Sunday, 15th June (7pm-11pm Jakarta). Overall good showing from both pairs, but consensus view is Jokowi-JK win this 1st Round debate last night. Last night key positive takeaway – both are promoting pluralism (proven by reinforcing Municipal Head election in South Jakarta by Governor […]

Presidential candidates see new level of donations

Jun 06, 2014 - Indo - 0 Comments - Standard

Presidential candidates see new level of donations. As of Thursday, Jokowi’s campaign team has gathered ~Rp8bn (US$84k) from more than 20k people as well as Rp20bn (US$1.7m) from companies since Sunday. Head treasury of Jokowi’s campaign team Didit Paryadi said the donation trend has shifted from businessmen to common people. The donations for Jokowi were […]

Indonesia Banks Sector: Time to play the laggards?

Jun 02, 2014 - Indo - 0 Comments - Standard

● With smaller banks underperforming the banks index by 13-31% over the past year, the valuation gap between the two set of banks has widened to 50% as compared to a 4Y average of 27%. We are being asked whether it is time to rotate into the laggards. ● As regards to fundamentals, the divergence […]

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