Company Update / Banks / Click here for full PDF version
- Restructured loans have been on the declining trend in the last 3 months, the only bank that managed such feat.
- Covid restructuring quality has been stellar amid minimal re-restructuring after 6 months grace period. This in-line with NIM improvement.
- Withupcoming integration of Pegadaian and PNM, we think
Covid restructuring loan was on the declining trend for 3 straight months
Asset quality for Covid restructuring has been surprisingly robust; this may lead to better CoC in FY21-22
To our surprise, the quality of Covid restructuring portfolio has been robust; with the proportion of re-restructuring (2x Covid restructuring) has been only at c.Rp11tr in Nov20/6% of total loan.Note that the re-restructuring started in Sep onwards which was after the end of grace period (majority of MSME loan got 6 months grace period), as such the Nov data has captured the Mar-May restructuring (85% of total Covid restructuring).
Upcoming integration with Pegadaian and PNM is also a boon
Upcoming MnA with Pegadaian and PNM shall add c.10% to its FY21 earnings and +8bp/-38bp to ROA/ROE. Note that this hasn't taken into account the potential synergy ( please refer to our previous note ).
Upgrade our EPS and TP; maintain Buy
We upgrade our FY21-22 EPS by 12-19% on the back of lower CoC assumption and also our TP to Rp5,600now implying 2.7x FY21 P/BV(at +0.5 over its LT average). BRI was the major outperformer (+17% against SOE bank peers in the past one year) and will continuein FY21, we believe.
Sumber : IPS