In today’s briefing:
- Indonesian Banks 2Q22 Screener; Stick with Bank Mandiri, and Negara Is Our Value Pick
Indonesian Banks 2Q22 Screener; Stick with Bank Mandiri, and Negara Is Our Value Pick
- In 2Q22, the six Indonesian banks retain their strong capital adequacy ratios, healthy credit quality and good NPL coverage; yet we see select credit quality headwinds, especially in MSME credit
- We maintain our positive view on Bank Mandiri, with its attractive pre-provision profitability and healthy cost of risk, whilst trading on attractive multiples; we prefer Bank Negara to Bank Rakyat
- We await stronger signals from Bank Permata for its “turn around” potential, especially if management can improve credit quality, and keep lowering its cost of risk to boost returns
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