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

Bank Negara Indonesia – MOSOE Tosses A Grenade

Bank Negara Indonesia (BBNI IJ) - The Happening

The Week That Was in ASEAN@Smartkarma - BNI Is Happening, Indonesian Hospitals, and the PSE

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

Bank Negara Indonesia (BBNI IJ) - Liquidity Crunch - On the Ground in J-Town

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

Bank Negara Indonesia Persero / Equity Bottom-Up

A call with <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> revealed a focus on preparing the ground for a recovery next year, with efforts to lower funding costs but also to build higher provisioning levels, especially for its commercial loans.
<a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> has been reducing its time deposit rates by stopping offering special rates to customers but rates are still high compared to peers.
The bank's corporate and consumer loans are in better shape, with a focus on growing its better quality corporate and salary-based mortgage loans but commercial loans are a black spot.
<a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> is behind its peers on its digital banking initiatives but has seen strong growth of +80% YoY this year in terms of transactions and nearly +60% growth is its mobile banking users. It continues to push out mobile banking to its 40m savings accounts. 
The updated guidance is for credit costs to rise to versus previous guidance, which suggests further provisioning to come.
The new management team from <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 undoubtedly move to implement new growth strategies but short term the priority will be to clean up the bank's books.
Valuations are relatively attractive, with <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> trading on 1.06x FY20E PBV, with its ROE expected to recover to 9.6% in FY21E but there is a risk that provisioning will continue to rise going into 2021, which would further impact profits.

A call with Bank Negara Indonesia Persero (BBNI IJ) revealed a focus on preparing the ground for a recovery next year, with efforts to lower funding costs but also to build higher provisioning levels, especially for its commercial loans.
Bank Negara Indonesia Persero (BBNI IJ) has been reducing its time deposit rates by stopping offering special rates to customers but rates are still high compared to peers.
The bank's corporate and consumer loans are in better shape, with a focus on growing its better quality corporate and salary-based mortgage loans but commercial loans are a black spot.
Bank Negara Indonesia Persero (BBNI IJ) is behind its peers on its digital banking initiatives but has seen strong growth of +80% YoY this year in terms of transactions and nearly +60% growth is its mobile banking users. It continues to push out mobile banking to its 40m savings accounts. 
The updated guidance is for credit costs to rise to versus previous guidance, which suggests further provisioning to come.
The new management team from Bank Mandiri Persero (BMRI IJ) will undoubtedly move to implement new growth strategies but short term the priority will be to clean up the bank's books.
Valuations are relatively attractive, with Bank Negara Indonesia Persero (BBNI IJ) trading on 1.06x FY20E PBV, with its ROE expected to recover to 9.6% in FY21E but there is a risk that provisioning will continue to rise going into 2021, which would further impact profits. 

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