NIM was flat YTD at 8.1%.
Bank Rakyat Indonesia (BBRI) reported 1Q17 net profit growth of 6% YoY, which Maybank Kim Eng expects to hold up until YE17. Its loan quality and NPL coverage remain the best among SOE banks.
Here's more from Maybank Kim Eng:
BBRI’s 1Q17 net profit of IDR6.6t (US$495m) (+6% YoY) was in line with our forecast. NIM was flat YTD at 8.1%, supported by strong growth in small commercial and non-SOE corporate loans, as well as the lower TD rate cap effective 2Q16, which allowed BBRI to cut its CoF further to 3.74% in 1Q17.
As part of its strategy, the bank built up its provisions to a total of IDR5.2t in 1Q17. Combined with a benign NPL of 2.2%, BBRI managed to increase its coverage to 176% from 157% in FY16.
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