Mandiri Sekuritas Panin Bank: PNBN 1Q2010 up by 221%yoy, ahead expectations (PNBN, Rp1,190, Neutral: Rp780)

􀂄 PNBN reported strong 1Q10 results with net profit posted at Rp420bn, an increase 221.4% yoy far ahead our expectations and consensus estimates.

􀂄 Bank’s NIM surged to 5.7%, compared to 4.3% last year, thanks to impressive loan growth by 13%qoq which above from the industrial average. Total deposits booked at Rp57,102bn(+15.0yoy), maintained its LDR at 75.7%. NPL of the bank reduced at 2,3%(vs. 3.2% FY09), while coverage ratio at 125%, showing improvement asset quality of the bank.

􀂄 PNBN is currently trading at P/BV10F 2.5x and PER10F 21.9x. We still maintain Neutral on the stock.