Live Chat Software
Berita Dan Riset Terbaru
Trading Ideas
Banking Sector: FY14 preview
January 16, 2015 08:47

BI has released its numbers on banks’ performance in 11M14, and they are pretty much in-line with our forecasts. As expected, loans growth for the banks under our coverage remained muted in November 2014 of 11.4%, down even from September 2014’s weak figure. Deposits growth however was more varied in the range of 5.1-21.5% YoY in November 2014. Hence, overall, the LDR stood at 84.1% as of November 2014 as BI also relaxed its LDR definition in mid-November 2014. On an encouraging note, gross NPLs remained subdued at 1.78% as of November 2014 amidst the current situation. While the top and bottom line performance of banks is still in-line with our forecasts, we expect profitability for banks under our coverage to be flat in FY14F. We maintain our overweight call on the sector with BBRI as our Top Pick supported by its premium margins and adequate liquidity. Read More