CIMB Bank Rakyat Indonesia Result note - Growth champion

Bank Rakyat Indonesia Result note - Growth champion - by Mulya Chandra CFA
(BBRI IJ / BBRI.JK, OUTPERFORM - Maintained, Rp4,150 - Tgt. Rp5,600, Financial Services)

BRI's FY08 results were slightly above consensus and our expectations, on higher-than-expected other income. Loan growth was 41% yoy, far stronger than the industry's +31%. Quarterly NIM, however, eased to 9.7% from 11.0% in 3Q08 on higher cost of funds. We have raised FY09-10 EPS forecasts by 7% on lower tax rate assumptions, which lifts our DDM target price to Rp5,600 (from Rp5,250). Maintain Outperform, as we expect investors to return to a search for growth after an expected round of NPL hiccups in 1H09.