汇丰银行-印度尼西亚银行业-20170804-hsbc-bankrakyatindonesia(bbriij)reduce,front-loadingcreditcostinto1h17.pdfVIP

4 August 2017   Bank Rakyat Indonesia (BBRI IJ) EQUITIES COMMERCIAL BANKS  Reduce: Front-loading credit cost into 1H17 Indonesia  2Q17 earnings were weighed down by credit cost MAINTAIN REDUCE  But this could improve in 2H17 due to credit cost front-loading TARGET PRICE (IDR) PREVIOUS TARGET (IDR)  Maintain Reduce. Raise TP to IDR12,200 from IDR10,820 12,200 10,820 Within consensus expectations. 2Q17 PPoP was up 18% y-o-y to IDR12,821bn SHARE PRICE (IDR) UPSIDE/DOWNSIDE thanks to a 14% y-o-y increase in total income. Despite this, pre-tax profit was up by 14,950 -18.4% only 4% y-o-y to IDR 8,145bn due to a 63% y-o-y increase in absolute credit cost. (as of 02 Aug 2017) Although annualized pre-tax earnings are within our full year estimate and 9% below MARKET DATA consensus, we consider the results to be in-line with market expectations as BBRI Market cap (IDRb) 368,804 Free float 43% Market cap (USDm)