Bank Mandiri (BMRI) - Still On The Right Track

Bank Mandiri (BMRI) – Maintain BUY
Price: Rp7,000 – Target Price: Rp8,300
Still on the right track

  • As of 1Q11, BMRI recorded net income of Rp3.9 tr, above our expectation.
  • Portfolio of small, micro and commercial loan was enhanced.
  • Cost to income shrank significantly to 31.7% from 42% on FY11.
  • We revise our forecast incorporating recovery loan and unused loan provision.
  • We upgrade our target price as a result of forecast upgrade. TP Rp8,300.
  • Maintain Buy.