ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

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CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

A call with <a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ)</a> revealed a relatively positive message on a number of fronts, which came as a rare positive surprise. 
The bank has made good progress on asset quality, with growth in restructured loans flattening out with no change since the end of 2Q2020. There was no resurgence of problem loans since new PSBB measures were imposed and we have now just returned to the new normal. 
<a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ)</a> remains confident that credit costs are like to come in at the lower end of its FY2020 guidance at 2.5%.
Loan growth between June-August has been weak with a declining balance due to early repayments in the corporate segment, with some SOEs receiving funding from the government, which they have used to repay loans with banks.  
Retail lending has been quiet although there has been some pick up in mortgages and some improvement in auto loans. 
The bank has significantly reduced its time deposit rates to around 3.5% with a 200bp reduction, which will feed through to higher net interest income, especially in 4Q2020. 
We also look at the potential listing for the bank's Syariah business in the not too distant future. 
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<a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ)</a> is trading on 1.3x FY2020E PBV versus its 5-year average of 1.8x, with its ROE forecast to recover to 12.7% in FY21E on the back of a +61.8% EPS growth. The announcement of the new management team and its 3Q2020, will both provide positive catalysts over the next month. The fact that credit costs are under control should be a further positive catalyst for the bank. 
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A call with Bank Mandiri Persero (BMRI IJ) revealed a relatively positive message on a number of fronts, which came as a rare positive surprise. 
The bank has made good progress on asset quality, with growth in restructured loans flattening out with no change since the end of 2Q2020. There was no resurgence of problem loans since new PSBB measures were imposed and we have now just returned to the new normal. 
Bank Mandiri Persero (BMRI IJ) remains confident that credit costs are like to come in at the lower end of its FY2020 guidance at 2.5%.
Loan growth between June-August has been weak with a declining balance due to early repayments in the corporate segment, with some SOEs receiving funding from the government, which they have used to repay loans with banks.  
Retail lending has been quiet although there has been some pick up in mortgages and some improvement in auto loans. 
The bank has significantly reduced its time deposit rates to around 3.5% with a 200bp reduction, which will feed through to higher net interest income, especially in 4Q2020. 
We also look at the potential listing for the bank's Syariah business in the not too distant future. 

Bank Mandiri Persero (BMRI IJ) is trading on 1.3x FY2020E PBV versus its 5-year average of 1.8x, with its ROE forecast to recover to 12.7% in FY21E on the back of a +61.8% EPS growth. The announcement of the new management team and its 3Q2020, will both provide positive catalysts over the next month. The fact that credit costs are under control should be a further positive catalyst for the bank. 


Bank Mandiri Persero (BMRI IJ) - A Plethora of Good News