At a Glance
• 2Q10 net profit was in line with expectations.
• Loans growth picked up to 10% q-o-q, while provisions were flattish. CASA to total deposit remains low versus peers.
• Issuing fixed rate bonds to diversify its funding sources and for asset and liability management.
• Maintain Hold and Rp5,300 TP.
Comment on Results
2Q10 net profit of Rp732bn (+4% q-o-q, +53% y-o-y) was in line with market expectations. We believe that the huge increase y-o-y was due to the absence of non-recurring provisions set aside for foreign exchange forward contracts that related to defaults on derivatives contracts last year. Loan grew 10% q-o-q in second
quarter, bringing cumulative growth to 12% in 1H2010. Growth was mainly from the mass-market segment (micro and auto loans), while there was also a significant pick up in wholesale loans (but its composition is only 12% of total loans). NIM was a tad lower at 11.6%, while provisions were flat q-o-q. NPL ratio was lower at 3.4% in 2Q10 compared to 4.0% the previous quarter. Meanwhile, deposits grew by 4% q-o-q, but low cost deposits (CASA) at 39% of total deposits still remained lower compared to the larger banking peers. Total CAR was lower at 18.0% compared to19.7%,
believed to be due to increase in loans.
BDMN will be issuing fixed rate bonds of up to Rp3trn with a 3 and 5-year tenure. Proceeds will be utilised as part of the bank’s strategy to diversify funding sources as well as for asset and liability management.
Recommendation
TP of Rp5,300 is based on the Gordon Growth Model with the following assumptions: 20% sustainable ROE, 10% long-term growth and 15% cost of equity and implies 2.2x FY11 BV and 12.4x FY11 EPS. BDMN has the highest beta among the four banks in our coverage.
Tidak ada komentar:
Posting Komentar