Bank Rakyat Indonesia (BBRI) - Very Surprising

Bank Rakyat Indonesia (BBRI) – Maintain BUY
Price: Rp5,750 -  Target Price: Rp6,750

Very Surprising

  • As of 4Q10, net interest income and net income as much Rp11.8 tr (+62.2% QoQ) and Rp4.8 tr (+106% QoQ)
  • Strong net interest income was supported by low cost of fund
  • LDR stood at 75.2% because the additional demand deposits from TSA on end of 2010. CAR stood at 13.8% and management still comfort with this level
  • We maintain our target price at Rp6,750 per share translates PBV3,8x. Maintain BUY