Mandiri Sekuritas Panin Bank: 1H10 results above our expectations and consensus estimates (PNBN, Rp1,010, Sell, TP: Rp780)

􀂄 Panin Bank reported net profit of Rp786bn in 1H10 (-+131.4% yoy), which was above our expectation and consensus estimates.
􀂄 The bank reported higher than expected non interest income as the company recorded higher gain from the selling of marketable securities (Rp345.1bn in 1H10 vs Rp103.3Bn in 1H09).
􀂄 At present, Bank Panin is trading at 2011F P/BV of 2.1x and PER of 23.6x. We are reviewing our forecast for the bank, yet maintained our sell recommendation for the time being.

Mandiri Sekuritas PNBN to divest 14% share-ownership in ANZ Panin. (PNBN, Rp1,170, Neutral, TP: Rp780)

􀂄 PT Bank Pan Indonesia (PNBN) will divest its 14% share-ownership in PT Bank ANZ Panin to Australia and New Zealand Banking Group Limited (ANZ). The divestment, however, is still subject to approval from the Central Bank of Indonesia or Reserve Bank or Australia. Following the divestment, the ownership of ANZ in the bank will increase to 99% from previously 85%. ANZ is preparing US$44 mn for the acquisition.

􀂄 Based on data from Bank Indonesia, as per Nov 09, ANZ Panin’s earnings declined by 84.27% yoy to Rp28.54bn, compared to Rp181.5 bn in 2008. However, the bank has booked a slight increase in credit expansion by 1.9% yoy to Rp8.82 tn, while third party funds reported at Rp11.56tn, increased from Rp7.58tn in the previous year. We still maintain Neutral recommendation on PNBN with P/BV 2.5x and P/E10 23.4x.

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.