BJTM
Contact our analyst Lingga
18% upside. HOLD.
13th November 2020
Price Rp 620
Target price Rp 730
Net profit decreased
In 9M20, Net profit decreased 3.59% YoY. Net interest Income grew 2.46% YoY but there was an increase in impairment loss expenses of 8.58% YoY and non-interest operational expenses also increased by 9.18% YoY. Loan growth rose 7% YoY which was largely contributed by the SME segment. The net interest margin decreased to 5.70% compared to 6.30% in 9M19.
Loan and Time Deposit growth
In 9M20 loan growth for the consumer segment increased by 4.6%, for the commercial segment by 9.86%, for the SME segment by 12.24%. This increase was contributed by payroll and pension loans. BJTM received PEN funds and most of the local governments also transferred funds so that deposits jumped by 32.9% YoY. At the end of the year, civil servant salaries and government funding should shift to low-cost funds which are currently 63%, so we estimate that CASA will increase to 76% and the LDR will be around 64% at the end of the year.
Restructured BJTM
Restructured loans are now IDR 16,95.91Tn or 4.20% of total loans and BJTM estimates that they will reach 5% by the end of the year, while new loan growth is being limited. On Asset quality. gross non-performing loans increased to 4.5%, from 4.3% in 2Q20. Most of the increase was from construction loans. Late payment penalties and additional interest for NPL loans are also being given a 75-100% discounts to help customers pay off the principal. We estimate that NPLs will decline with economic recovery to around 2.9% in 2020.
Valuation: 18% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR. 680 or trading at 0.8x PBV which gives 18% potential upside, Hold.
In 9M20, Net profit decreased 3.59% YoY. Net interest Income grew 2.46% YoY but there was an increase in impairment loss expenses of 8.58% YoY and non-interest operational expenses also increased by 9.18% YoY. Loan growth rose 7% YoY which was largely contributed by the SME segment. The net interest margin decreased to 5.70% compared to 6.30% in 9M19.
Loan and Time Deposit growth
In 9M20 loan growth for the consumer segment increased by 4.6%, for the commercial segment by 9.86%, for the SME segment by 12.24%. This increase was contributed by payroll and pension loans. BJTM received PEN funds and most of the local governments also transferred funds so that deposits jumped by 32.9% YoY. At the end of the year, civil servant salaries and government funding should shift to low-cost funds which are currently 63%, so we estimate that CASA will increase to 76% and the LDR will be around 64% at the end of the year.
Restructured BJTM
Restructured loans are now IDR 16,95.91Tn or 4.20% of total loans and BJTM estimates that they will reach 5% by the end of the year, while new loan growth is being limited. On Asset quality. gross non-performing loans increased to 4.5%, from 4.3% in 2Q20. Most of the increase was from construction loans. Late payment penalties and additional interest for NPL loans are also being given a 75-100% discounts to help customers pay off the principal. We estimate that NPLs will decline with economic recovery to around 2.9% in 2020.
Valuation: 18% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR. 680 or trading at 0.8x PBV which gives 18% potential upside, Hold.
Previously
