Company Update / Click here for full PDF version
Author(s): Jovent Muliadi, Timothy Handerson
- We recently met with
- We were pleasantly surprised to find out that NIM has started to improve while provision to remain prudent, contrary to what market believes.
- It remains one of our top pick. At 1.2x P/BV we think its offers the most attractive risk-reward preposition. Risk is management change, if any.
FY20 outlook remains bright despite upcoming AGM
We recently had a discussion with
Prudent provisioning approach
Contrary to investors' concern on underprovisioning, we found that
Improvement in NIM was encouraging amidst lower CoF
Our discussion with management also suggested that its NIM has come back to c.5% in Jan20 vs. 4.9% in FY19. The improvement in NIM was largely supported by lower CoF amid surge in CASA in Nov/Dec (CASA up 5% mom both in Nov and Dec). Jan20 CASA also went up by c.11% yoy vs. TD -3% yoy which showed an encouraging trend.
Sumber : IPS