CIMB Bank Rakyat Indonesia Result note - Only slight NPL deterioration

(BBRI IJ / BBRI.JK, OUTPERFORM - Maintained, Rp5,250 - Tgt. Rp7,000, Financial Services)

BRI's 1Q09 results slightly beat consensus and our expectations, on a stronger-than-expected topline. No significant problems in its asset quality. NPL ratio only climbed to 3.2% from 2.8% at Dec 08, still lower than Mar 08's 3.8%. Operations remained strong, with loans growing 3% qoq and 40% yoy, ahead of peers. ROE was sustained at a high industry level of 28%. BRI again demonstrated its resilience in a challenging and dynamic banking landscape. Maintain Outperform and DDM-based target price of Rp7,000.