Industry Focus Indonesian Banks and Multifinance Companies Refer to important disclosures at the end of this report DBS Group Research . Equity 9 Jan 2015 Size does matter JCI : 5,207.12 Big banks to perform better in a tough environment Analyst LIM Sue Lin +65 6682 3711 Another challenging year
[email protected] Growth to remain muted Christopher Daniel Wijaya +62 21 3003 4935 BMRI is our new top pick
[email protected] OJK is likely to Indonesian banks coverage Big banks to stay in the limelight. Performance (%) target slow loan growth in 2015, leading us to expect Price Mkt Cap Target deposit growth to outpace loan growth, which would Rp US$m Price Rp 3 mth 12 mth Rating ease liquidity conditions. Bigger banks with a stronger Bank Central Asia 13,125 25,520 12,500 5.0 40.4 HOLD deposit franchise will have a competitive edge and be Bank Mandiri 10,850 19,966 12,200 14.2 41.8 BUY able to defend NIM. OJK and BI’s stance to promote Bank Tabungan Negara 1,205 1,004 940 11.1 42.6 FV branchless banking will support transaction banking for Bank Rakyat Indonesia 11,775 22,908 12,600 16.6 67.6 HOLD larger banks. Smaller banks may continue to face Bank Negara Indonesia 6,075 8,935 6,400 15.2 65.1 HOLD funding cost pressure and sporadic asset quality issues. Bank Tabungan Pensiunan 3,990 1,838 4,600 (10.3 (9.3) HOLD Panin Bank 1,070 2,033 1,230 10.9 74.0 HOLD Growth to remain muted.