bjbr fy10 results below forecast 11 mar 2011 db
TRANSCRIPT
-
7/27/2019 BJBR FY10 Results Below Forecast 11 Mar 2011 DB
1/1
Cmpn Asia ASEAN IndonesiaBanking/Finance
11 Mar 2011 - 11:07:55 AMGMT
GoMaksRech COMPANY ALERT Results
Bank BJB BuyFY10 results - Below forecasts
Reuters:BJBR.JK Exchange:JKT Ticker:BJBR
Price (IDR) 1,140Price target (IDR) 2,10052-week range (IDR) 1,770.00 -900.00Market cap (USDm) 1,259Shares outstanding (m) 9,696NPL/total loans (%) 2.3Price/book (x) 2.2
FYE 12/31 2009A 2010E 2011EProvisioning
(IDRbn)
160.2 435.8 471.5
Pre-prov
profit
(IDRbn)
1,115 1,824 2,028
EPS (IDR) 111.92 107.35 120.40
PER (x) 10.6 9.5
Yield (net)
(%)
3.2 4.7
BJB has released its FY10 results. NP of Rp890bn (+26% yoy) came in shortof our FY10F projection of Rp1.0tr. The bank cited that this is due to theimplementation of the new accounting rules (PSAK 50 and 55), which re-sulted into adjustment of interest income recognition. The weighted aver-age ROAE stands at 24.95%, while NIM is at 7.3% (vs 7.7% in 2009).
At the operating level, the bank booked loans of Rp23.7tr (+20.6% yoy),while deposits rose to Rp32.0tr (+34.7% yoy). This implies LDR of 74.1%.As of FY10, consumer loans accounted for 72.7% of total loan book; fol-lowed by micro loans for 10.7%, and commercial loans for 16.6%. Gross
NPL is at Rp440bn, which is down from Rp560bn in 2009. This implies NPLof 1.9% (down from 2.0% in 2009). As of FY10, CAR stood at 22.9% - mak-ing BJB one of the well capitalised banks.
Going into 2011, the bank projects FY11 NP of Rp1.1tr (+27% yoy) - ag-gressive but not unrealistic, in our view. Also, it aims for loan and depositgrowth of 30% and 20% respectively. It targets micro loan to be 20% oftotal loan books (vs 11% in 2010), consumers at 65% (vs 73%) and com-mercial at 16% (vs 17%). At this pace of growth, we estimate implied LDRwould be 80%.
Despite the weak results, we retain our Buy recommendation as we believeBJB should still deliver one of the highest ROAE of over 20% with CAR ofover 20%.
BJB - FY10 earnings
Raymond Kosasih, CFAPT Deutsche Bank Verdhana In-
donesia
Research Analyst
(+62) 21 318 9525
Arinta HarsonoPT Deutsche Bank Verdhana In-
donesia
Research Analyst
(+62) 21 318 9519
Deutsche Bank AG/Hong Kong
This research has been prepared in association with PT Deutsche Bank Verdhana Indonesia. The opinions contained in this
report are those of PT Deutsche Bank Verdhana Indonesia.
All prices are those current at the end of the previous trading session unless otherwise indicated. Prices are sourced from local
exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies. Deutsche
Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that thefirm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only
a single factor in making their investment decision.
THE VIEWS EXPRESSED ABOVE ACCURATELY REFLECT PERSONAL VIEWS OF THE AUTHORS ABOUT THE SUBJECT
COMPANY(IES) AND ITS(THEIR) SECURITIES. THEY HAVE NOT AND WILL NOT RECEIVE ANY COMPENSATION FOR PRO-
VIDING A SPECIFIC RECOMMENDATION OR VIEW IN THIS REPORT. FOR OTHER DISCLOSURES PLEASE VISIT HTTP://
GM.DB.COM MICA(P) 007/05/2010
http://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JKhttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=BJBR.JK