Period FY12/4Q12
Actual vs. Expectations PT Bank Internasional Indonesia Tbk (“BII”)
posted a FY12 PAT of Rp1.2t.
Dividends No
dividend was proposed during the quarter.
Key Result Highlights
On a YoY comparison, the FY12 PAT of Rp1,208b
was higher by 81.0% due to a strong balance sheet expansion. Loans growth
increased strongly by 20.0% YoY to Rp80.9t, driven by SME (+41% YoY) and Corporate
(+24% YoY).
Consequently, net
interest income was up by 33% YoY to Rp2,005b. The NIM, meanwhile, widened by
51bps YoY to 5.73%. The higher-than-expected FY12 NIM expansion showed that the
group did well in pricing discipline on its funding cost. The high LDR of 93.0% contributed heavily to
the NIM expansion in our view.
However, the
Rp2,151.0b in Non-Interest Income fell 8.0% YoY due to the drop in two-wheeler
business, which was impacted by the new LTV rule.
The opex of
Rp4,859.0b was up 12.0% YoY. Personnel cost added mostly to the higher opex.
The higher revenues mentioned above led to a lower cost-toincome ratio of 65.1%
(-3.61% YoY).
The net impaired
loans ratio was sustained at 1.26% (1.24% in 2011). As a result, the ROE also
increased by 6.63% to 15.8%.
Outlook BII’s
outlook should remain positive in 2013 given its accelerating balance sheet
growth strategy. During the briefing, management said it expects volume growth
to remain strong and has set the headline KPI loan growth target at 22% YoY for
the year with a preference on growing its SME, Corporate and four-wheeler loans
as the drivers for 2013. Meanwhile, the
group also sees a narrower NIM in the range of 5.4-5.5%. The group is now targeting a cost-to-income
at below 60% and is also continuously improving its asset quality via a lower NPL
ratio.
We remain confident
of BII’s balance sheet growth story and do not discount the possibility of a
capital injection by Maybank Group given that a USD150m equity injection should
see BII’s Total Capital Ratio improve to 13.0%.
Change to Forecasts There are no changes to our earnings estimates
on the overall Maybank Group.
Rating Maintain OUTPERFORM
Our OUTPERFORM rating
is maintained as the current share price implies a 21% total upside (together
with a 6.55% net div. yield) to our Target Price (TP).
Valuation Our
Target Price of RM10.40, based on 2.0x FY13 P/BV and implying a 14.9x FY13 PER,
is retained.
Risks Unexpected slowdown in fee incomes.
Source: Kenanga
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