CIMB Bank Tabungan Pensiunan Result note - Expansion mode

(BTPN IJ / BTPN.JK, OUTPERFORM - Maintained, Rp1,700 - Tgt. Rp2,600, Financial Services)

BTPN's 1Q09 net profit was lower than our forecast and consensus expectation, on higher-than-expected operating expenses due to expansion. The bank has started to install a new core banking system and open new branches. It added 107 branches in 1Q09, out of the 500 planned for this year for its new micro banking expansion. We have reduced our FY09-11 EPS estimates by 16-34% as we raise cost assumptions. Maintain Outperform, nevertheless, with an adjusted GGM target price of Rp2,600, from Rp2,700. The bank's asset-quality resilience and higher-than-peers loan growth are virtues. Implementation of its new micro banking strategy under the Mitra Usaha brand name should bring further upside to growth, on top of its current pension loan business.