Tags: BBRI

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 […]

Infrastructure project in Sumatra

Jun 02, 2014 - Indo - 0 Comments - Standard

Infrastructure project in Sumatra. Four SOE banks BBRI, BMRI, BBNI and BBTN to fund infra project in eastern coast of Sumatra with BBNI as the leader for syndicated loans. The banks will fund the 1,120km electricity transmition project together with some other regional banks. The project itself is worth US$10tn and 70% of which will be […]

BBRI: “The King of Rural”

May 26, 2014 - Indo - 0 Comments - Standard

Both presidential candidates have submitted their visions and missions. In the financial sector, we believe the major banks will be playing instrumental roles in supporting development. Key common focus of the Vision and Mission from both presidential candidates is: -Enhancing financial inclusion to at least 50%. This will involve providing financial services to those that […]

Stock selections based on shared common ground between Jokowi and Prabowo

May 23, 2014 - General - 0 Comments - Standard

Stock selections which will benefit no matter who wins the presidential election as both presidential candidates offers a common ground for economic development programs which are infrastructure (JSMR, SMGR, WIKA, BMRI, BBRI, BBNI) , oil and gas (PGAS, MEDC) , and agriculture and SME/micro economic (BBRI) key developments. At the end of the day who […]

SOE Ministry approves BRI to acquire Bank Mutiara

May 23, 2014 - Indo - 0 Comments - Standard

The ministry of state owned enterprises has given a nod for BRI to buy Bank Mutiara (formerly Bank Century), one of the 11 potential buyers announced by the LPS. The acquisition process is still a long way, with banks to conduct due diligence on Bank Mutiara in June-July 2014 with the final bid to be […]

Policy & Probability in Indonesia: A look at the Candidates’ Economic Platforms

May 22, 2014 - Indo - 0 Comments - Standard

Our first look at Jokowi’s 9 point agenda is one of broad strokes – but we welcome the idea of O&G reform, land reform, promoting tolerance and raising R&D spend as well as education quality. The Prabowo agenda carries more detailed economic targets, and appears more populist. We see specific items that are positive for […]

BBRI: Maintaining Asset Quality in a Challenging Year

May 14, 2014 - Indo - 0 Comments - Standard

Reducing our NPL assumption, we expect asset quality to be maintained Indonesian economy in first quarter of 2014 (1Q2014) grew by 5.2%, less than the most pessimistic scenario of 5.3% by World Bank. One of the main culprits was higher interest rate, where Bank Indonesia (BI) hike BI rate from 5.5% to 7.5% in 2013. […]

BBRI: Navigating Challenges

Apr 28, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia (BBRI)’s 1Q14 earnings were within estimates, although they bear a somewhat cautious tone, in our view. As cost of funds inched up, NIM saw sequential squeeze but cost management and benign credit cost supported earnings. The growth and health of the micro business were well-sustained. Liquidity is becoming a challenge as LDR […]

BBRI 1Q14 results – better than expectations

Apr 25, 2014 - Indo - 0 Comments - Standard

· BBRI posted another strong results with net profit of Rp5.9tr (+17% y-y), accounting for 25% of consensus and 26% of our full year estimates. Given the typical slow 1Q, the results were better than expectations. This came from strong micro loan growth and CASA deposit growth, hence improvement in NIM. · Despite 16% y-y […]

BBRI: Results Review: Navigating Challenges

Apr 25, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia (BBRI)’s 1Q14 earnings were within estimates, although they bear a somewhat cautious tone, in our view. As cost of funds inched up, NIM saw sequential squeeze but cost management and benign credit cost supported earnings. The growth and health of the micro business were well-sustained. Liquidity is becoming a challenge as LDR […]

Banking – competitors have not followed BBCA rate hike

Apr 24, 2014 - Indo - 0 Comments - Standard

Banking – competitors have not followed PT Bank Central Asia Tbk (BBCA) rate hike. Seiring dengan kenaikan suku bunga deposito BBCA menjadi maksimal 9,25% untuk deposito di atas Rp25 miliar, kami menelusuri kompetitor. Mandiri Sekuritas menemukan bahwa tidak ada yang bereaksi dengan menaikkan suku bunga mereka. Bank-bank tersebut termasuk bank menengah, bank besar, dan bank […]

BBRI – Result Review – Surprising Result in First Quarter

Apr 24, 2014 - Indo - 0 Comments - Standard

BBRI mencatat laba kuartal 1 2014 tumbuh 16,71% menjadi Rp5,9 triliun, mencapai 23,5% dari estimasi laba 2014 kami, dan 25,3% dari konsensus Bloomberg. Kami katakan pencapaian ini melebihi ekspektasi melihat rata-rata historis kuartal 1 menyumbang sekitar 22% terhadap total laba 1 tahun. Kredit tumbuh 19,9%, dengan segmen mikro tumbuh 21%, hal ini berhasil meningkatkan NIM […]

Better than expected US data on Thurs but not much to go on with locally today

Apr 21, 2014 - Indo - 0 Comments - Standard

Better than expected US data on Thurs but not much to go on with locally today. Expect some 1Q14 results to start to trickle in with deadline end of April. After AALI last week, we have BTPN reporting tomorrow morning and BBRI on Wednesday after market. Light turnover may continue today given the hols while […]

Indonesia Banks: The end of “20-20″; banks entering consolidation

Apr 21, 2014 - Indo - 0 Comments - Standard

A period of consolidation is upon us. We expect a 19% de-rating in P/BV multiples, to 2.09x vs. 2.58x in the last three years, as banks come off an ideal “20-20” combination of above 20% RoE and loan growth/EPS growth. We expect a lower RoE of 18.9% (2014E-16E) vs. 22.8% (2010-13), a slower loan CAGR […]

BBRI is interested in acquiring Bahana Pembinaan Usaha Indonesia

Apr 14, 2014 - Indo - 0 Comments - Standard

BBRI is interested in acquiring Bahana Pembinaan Usaha Indonesia (the holding co of local investment bank and asset management company Bahana) but will wait till the outcome of BBNI’s plans on Bahana. Co has allocated a Rp3trn warchest to acquire an insurance and securities firm

Indonesia Banks 1Q14 preview: Slowing earnings growth

Apr 14, 2014 - Indo - 0 Comments - Standard

Banks’ 4Q13 results were solid, but we expect earnings to slow down in 1Q14, as impacts from slowing loan growth, NIM compression, and NPL formation start kicking in. On average, we expect 5% YoY earnings growth in 1Q14, vs. 17% YoY in 2013. We continue to prefer Mandiri and BCA. Expecting slowing earnings growth: We expect […]

BANKING – 2014 Outlook – Slow But Sure

Apr 08, 2014 - Indo - 0 Comments - Standard

Permintaan kredit Indonesia masih sangat tinggi, tercermin dari penetrasi kredit/GDP sebesar 37%, sangat rendah dibanding negara berkembang seperti Malaysia 95% dan Thailand 79%. Pertumbuhan kredit lebih dari 20% di 2013 juga menunjukkan permintaan kredit yang tinggi meski BI Rate naik 175bps. Namun, di 2014 pertumbuhan kredit harus direm menjadi 15 – 17% untuk menjaga likuiditas. […]

The Commission for the Supervision of Business Competition (KPPU) declared that BBRI, together with Asuransi Jiwa Bringin Jiwa Sejahtera (life insurance) and Heksa Eka Life Insurance (general insurance) have been entering exclusive agreements for the bank’s mortgage customers, which lead to unhealthy competition

Apr 04, 2014 - Indo - 0 Comments - Standard

The Commission for the Supervision of Business Competition (KPPU) declared that BBRI, together with Asuransi Jiwa Bringin Jiwa Sejahtera (life insurance) and Heksa Eka Life Insurance (general insurance) have been entering exclusive agreements for the bank’s mortgage customers, which lead to unhealthy competition. BBRI has been accused for not providing other insurance alternatives for their […]

BBRI sepanjang tahun 2013 mencetak pertumbuhan laba bersih sebesar +14,24% menjadi Rp 21,34 triliun

Apr 04, 2014 - Indo - 0 Comments - Standard

Bank Rakyat Indonesia (BBRI) sepanjang tahun 2013 mencetak pertumbuhan laba bersih sebesar +14,24% menjadi Rp 21,34 triliun. Selain berhasil meraih kenaikan laba di tengah kenaikan suku bunga (BI rate) sepanjang 2013, emiten juga mampu menekan rasio kredit bermasalah alias non performing loan (NPL) gross sebanyak 23 basis poin dari 1,78% menjadi 1,55%. BBRI sendiri menjadi […]

Indonesia Banks: 4Q13 Results Round-Up

Apr 04, 2014 - Indo - 0 Comments - Standard

Bank 4Q13 performance: Still appealing Some slowdown but still solid FY13 net profit growth of 17.7% y-y All 10 banks under our coverage have reported 4Q13 earnings. Despite an overall slowdown in 4Q13 earnings of 12.9% y-y, the banks booked FY13 net-profit growth of 17.7% y-y, helped by: 1) strong loan growth of 21.7% y-y […]

Indonesia 4Q13 Results Round-Ups: The good, the bad & the ugly

Apr 03, 2014 - Indo - 0 Comments - Standard

Operating profit in line; Net profit better than expected 86 out of 87 stocks under our coverage (75% of total market capitalization of the IDX) have announced 4Q13 results – only BUMI has yet to report. In aggregate thus far, operating profit growth for our basket of stocks reaches 7.4% y-y (exhibit 1), relatively flat […]

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