CIMB BBTN Feedback from Asian roadshow

Maintain OUTPERFORM.
We recently brought BBTN’s senior management to meet investors in Kuala Lumpur, Singapore and Hong Kong and to present the bank’s latest performance updates along with its new strategic initiatives. Investors who held BBTN
shares were happy with the stellar performance of the last two quarters and reiterated their confidence in the bank, which indicates no plans to sell. Most potential investors also gave the impression that they liked BBTN’s business model although a small number were still sceptical. In our view, there are multiple reasons to be bullish about BBTN’s ability to unlock the next layer of upside to its loan growth, cost-income ratio and NIM given the 1) new emphasis on the funding franchise, 2) potential subsidy scheme changes that could boost loans, 3) technological and organisational breakthrough to reduce expenses, and 4) expansion into white and brown goods lending, leading to enhanced NIMs. We maintain our OUTPERFORM call and keep BBTN as one of our top banking picks with an unchanged target price of Rp1,900 (GGM, 16% discount rate). There is no change to our forecasts.