Bank Mandiri – Rise Of Loan Loss Reserves, Unclear?

The Week That Was in ASEAN@Smartkarma - Banks, Beers, and Mergers

PT Bank Rakyat Indonesia (Persero): Rather Rich for a Bargain Hunter

Bank Rakyat Indonesia Persero: Overbought Signals: Is This Peak Rakyat?

Bank Rakyat (BBRI IJ) - Digitalising the Masses - On the Ground in J-Town

Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a> is dedicated to mainly corporate lending and to a lesser extent the consumer segment, backed by CASA funding (60%) and by time deposits (40%).The bank is an expensive well-capitalised EM lender, supported by the promise of future growth in Indonesia’s budding financial services space.FY20/19 results show adverse fundamental momentum and trends with erosion in Profitability, in Efficiency, in NIM, Asset Yield, and Spread, in Asset Quality, and in Capitalisation (though comfortable) while Provisioning and Liquidity showed some improvement. Growth in “Core Income” remains muted, especially in Net Interest Income, with credit growth restrained, while the Insurance Revenue stream deteriorated, margin and spread narrowed, and inefficiencies deepened. Comprehensive Income decreased by 45% YoY.<div class="content-highlight">BBRI shares appear rich. A FV of 47%, a PBV of 2.71x, an Earnings Yield of 3.6%, and a Total Return Ratio of 0.1x, due in part to high DPR, are unappealing. An elevated Dividend Payout Ratio is not a signal of a high growth stock implied by punchy valuation metrics. The bank commands a low PH Score™ (3.7).</div>

Bank Rakyat Indonesia Persero (BBRI IJ) is dedicated to mainly corporate lending and to a lesser extent the consumer segment, backed by CASA funding (60%) and by time deposits (40%).The bank is an expensive well-capitalised EM lender, supported by the promise of future growth in Indonesia’s budding financial services space.FY20/19 results show adverse fundamental momentum and trends with erosion in Profitability, in Efficiency, in NIM, Asset Yield, and Spread, in Asset Quality, and in Capitalisation (though comfortable) while Provisioning and Liquidity showed some improvement. Growth in “Core Income” remains muted, especially in Net Interest Income, with credit growth restrained, while the Insurance Revenue stream deteriorated, margin and spread narrowed, and inefficiencies deepened. Comprehensive Income decreased by 45% YoY.BBRI shares appear rich. A FV of 47%, a PBV of 2.71x, an Earnings Yield of 3.6%, and a Total Return Ratio of 0.1x, due in part to high DPR, are unappealing. An elevated Dividend Payout Ratio is not a signal of a high growth stock implied by punchy valuation metrics. The bank commands a low PH Score™ (3.7).

PT Bank Rakyat Indonesia: Inefficiencies Deepen While Valuation Remains so Rich