Mandiri Sekuritas Panin Bank: FY09 results above our expectations, yet inline with consensus estimates (PNBN, Rp1,020, Sell, TP: Rp780)

􀂄 Panin Bank reported a net profit of Rp915bn in 2009 (-+30.5% yoy), which was above our expectation, yet inline with consensus estimates.

􀂄 The bank reported lower than expected provisioning expenses as NPL improved substantially to 3.2% at end Dec09 from 4.87% at end Sep09. This is partly enabled by strong loan growth during the quarter of 7.6% qoq to Rp44.4tn bringing total loan growth of 17.0% yoy.

􀂄 At present, Bank Panin is trading at 2010F P/BV of 2.2x and PER of 18.2x. We are reviewing our forecast for the bank, yet maintained our sell recommendation for the time being.