In today’s briefing:
- Bank Rakyat Indonesia (BBRI IJ) – MSME Marvel in the Making
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
Bank Rakyat Indonesia (BBRI IJ) – MSME Marvel in the Making
- Bank Rakyat Indonesia (BBRI IJ) booked strong growth in net profit in FY2021 beating its own guidance on most metrics and growing its exposure to MSMEs significantly.
- Loan growth to micro, ultra-micro & smaller corporate borrowers saw significant growth while its cost of funds came down and the cost of credit improved increasing profitability.
- With the increasing use of digital channels to grow its customer base and huge potential to cross-sell to 137m depositors, Bank Rakyat is a core holding amongst the Indonesian banks.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets rose with the S&P and Nasdaq ending 0.5% and 1.6% higher. Sectoral gains were led by Consumer Discretionary, up over 3%. US 10Y Treasury yields rose 7bp to 1.90%. European markets were lower with the DAX, CAC and FTSE down 1.8% 0.8% and 0.2%. Brazil’s Bovespa closed 0.5% higher. In the Middle East, UAE’s ADX was up 0.1% and Saudi TASI closed 0.5% higher. Asian markets have opened mixed with HSI and Nikkei down 0.31% and 0.73% while STI and Shanghai are up 0.32% and 1.91% respectively. US IG CDS spreads were 1bp wider and HY CDS spreads were 9.5bp wider. EU Main CDS spreads were 3.1bp wider and Crossover CDS spreads were 14.3bp wider. Asia ex-Japan CDS spreads were 3.2bp wider also.
Before it’s here, it’s on Smartkarma
