Daily Brief Financials: Bank Negara Indonesia Persero, Grupo Financiero Banorte, Lippo Karawaci, Tastemaker Acquisition Corp and more

• Bank Negara Indonesia finished 2022 with a strong set of numbers beating guidance and consensus, as it continued to benefit from low cost of funds and strong loan growth. 
• The bank has increased its exposure to higher-quality corporate customers, and large commercial customers in their supply chain plus growing government-backed KUR loans as well as consumer loans. 
• BNI’s strategy in digital banking for consumers and business customers is driving loan growth and fee income as well as funding. Valuations are attractive with rising returns increasing the appeal. 

• Banorte’s solid 4Q22, and the prospect of a healthy dividend payout, have so far trumped concerns of an earnings downturn from credit spread erosion, higher opex and cost of risk
• Bank sector data trends to November accentuate the return headwinds that we see emerging; further tightening credit spreads and a rising cost of credit, credit cards a likely leading indicator
• BBVA Mexico generates consistent premium ROE of 25%+, investors can gain exposure through BBVA equity; we continue to be cautious on Banorte, due to the growing risks to returns

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Azure Power Global Ltd
• Lippo Karawaci
• Tata Motors ADR

• Amidst all of the De-SPAC Bankruptcies, liquidity issues, and frauds, it’s been hard for investors to pinpoint strong, established businesses that deliver consistent returns.
• In fact, only a handful of companies in the three years since SPACs became a popular vehicle retained or saw their valuation increase.
• So it’s good to see businesses like jewelry wholesaler Quality Gold to debut through a SPAC deal.