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

The Week that Was in ASEAN@Smartkarma - A Digitally Enhanced SE Asia, Cement, and Thai Equities

Bank Negara Indonesia Persero (BBNI IJ) - Still More Pain to Come

Bank Mandiri Persero (BMRI IJ) - Time to Look Forward

Bank Mandiri Persero (BMRI IJ) - Biting the Bullet on Restructuring

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

Bank Mandiri Persero (BMRI IJ) - The Unsung Hero of Syariah?

Gravity Works As WeWork Doesn't; Now Plan B

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 Smartkarma webinar 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> this week revealed a bank well-positioned to benefit from the gradual economic recovery taking place in Indonesia.
The bank has a new management team, which is focused on its 5-year corporate plan, "beyond lending", which involves more cross-selling to wholesale clients to extract value and increasing its digital banking capabilities.
<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> has seen significant reductions in funding costs as well as a marked improvement in its liquidity position, with a loans to deposit ratio of only 83%.
It has seen its restructured loans plateau out and provisions continue to come down, with credit costs likely to peak by end of 2020 at 3.5% before falling in 2021. 
Loan growth has started to pick up for property and auto segments but loans are still focused on working capital rather than investment as yet. 
Mobile banking has overtaken ATMs in terms of transaction value for the first time and this brings with it significant cost savings. <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> will launch a super App next year to expand the scope of its digital business.
The creation of a new state-owned Syariah bank under <a href="https://www.smartkarma.com/entities/bank-brisyariah-tbk-pt" target="_blank" data-smartkarma-citation="entities:26981:1" rel="noopener">Bank Brisyariah (BRIS IJ)</a> 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> has great promise given greater scale and potentially high returns. 
From an ESG perspective <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 aligning itself with UN Sustainable Development Goals in a wide variety of areas, with the aim of being the ESG leaderin the Indonesian banking space.
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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> remains our top pick amongst the Indonesian banks, with a number of standout positives outline above and it more detail below the fold. The bank trades on 1.5x FY2020E PBV versus its 3-year average of 1.8x with the prospect of a strong rebound in earnings over the next two years and a rising ROE. 
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A Smartkarma webinar with Bank Mandiri Persero (BMRI IJ) this week revealed a bank well-positioned to benefit from the gradual economic recovery taking place in Indonesia.
The bank has a new management team, which is focused on its 5-year corporate plan, "beyond lending", which involves more cross-selling to wholesale clients to extract value and increasing its digital banking capabilities.
Bank Mandiri Persero (BMRI IJ) has seen significant reductions in funding costs as well as a marked improvement in its liquidity position, with a loans to deposit ratio of only 83%.
It has seen its restructured loans plateau out and provisions continue to come down, with credit costs likely to peak by end of 2020 at 3.5% before falling in 2021. 
Loan growth has started to pick up for property and auto segments but loans are still focused on working capital rather than investment as yet. 
Mobile banking has overtaken ATMs in terms of transaction value for the first time and this brings with it significant cost savings. Bank Mandiri Persero (BMRI IJ) will launch a super App next year to expand the scope of its digital business.
The creation of a new state-owned Syariah bank under Bank Brisyariah (BRIS IJ) with Bank Mandiri Persero (BMRI IJ) has great promise given greater scale and potentially high returns. 
From an ESG perspective Bank Mandiri Persero (BMRI IJ) is aligning itself with UN Sustainable Development Goals in a wide variety of areas, with the aim of being the ESG leaderin the Indonesian banking space.

Bank Mandiri Persero (BMRI IJ) remains our top pick amongst the Indonesian banks, with a number of standout positives outline above and it more detail below the fold. The bank trades on 1.5x FY2020E PBV versus its 3-year average of 1.8x with the prospect of a strong rebound in earnings over the next two years and a rising ROE. 


Bank Mandiri Persero (BMRI IJ) - A Stand Out on a Number of Fronts