Top Down Strategy and Large Cap Stock Picks - the DBS Vickers ...

Stock Profile: Bank Rakyat Indonesia
Regional Equity Strategy Q4 2007
Income Statement (Rp bn)
Balance Sheet (Rp bn)
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Net Interest Income 12,437 13,770 15,986 18,604 Cash/Bank Balance 21,558 39,899 36,264 33,637
Non-Interest Income 390 1,509 1,045 1,141 Government Securities 17,722 18,647 20,451 22,448
Operating Income 12,827 15,279 17,031 19,745 Inter Bank Assets 2,925 3,901 4,326 3,893
Operating Expenses (7,114) (7,646) (8,571) (9,460) Total Net Loans & Advs. 70,123 83,565 100,118 117,830
Pre-provision Profit 5,713 7,633 8,461 10,285 Investment 4,935 3,223 2,765 2,416
Provisions (401) (1,848) (1,412) (1,076) Associates 0 0 0 0
Associates 0 0 0 0 Fixed Assets 1,910 1,822 1,716 1,591
Exceptionals 0 0 0 0 Goodwill 0 0 0
Pre-tax Profit 5,608 5,907 7,191 9,374 Other Assets 3,603 3,669 3,666 3,864
Taxation (1,859) (1,649) (2,043) (2,812) Total Assets 122,776 154,725 169,305 185,679
Minority Interests 0 0 0 0 Customer Deposits 97,046 124,468 136,611 148,666
Preference Dividend 0 0 0 0 Inter Bank Deposits 1,182 1,868 1,525 1,697
Net Profit 3,749 4,258 5,148 6,562 Debts/Borrowings 4,187 3,996 4,073 4,108
Net Profit bef Except 3,749 4,258 5,148 6,562 Others 7,007 7,514 7,198 7,321
Minorities 0 0 0 0
Shareholders' Funds 13,353 16,879 19,898 23,886
Total Liab& S/H’s Funds 122,776 154,725 169,305 185,679
Profitability & Efficiency Ratios (%) Financial Stability Measures (%)
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Margins, Costs &
Balance Sheet Structure
Yld. ffi On i Earnings Assets 17.39 18.05 16.25 16.63 Loan-to-Deposit Ratio 77.8 72.5 79.3 85.5
Avg Cost Of Funds 5.11 6.36 4.87 5.19 Net Loans / Total Assets 57.1 54.0 59.1 63.5
Spread 12.28 11.69 11.38 11.44 Investment / Total Assets 4.0 2.1 1.6 1.3
Net Interest Margin 12.54 11.80 11.52 11.80 Cust . Dep./Int. Bear. Liab. 95.9 96.9 97.1 97.3
Cost-to-Income Ratio 55.5 50.0 50.3 47.9 Interbank Dep / Int. Bear. 1.2 1.5 1.1 1.1
Employees ( Year End) 0 0 0 0 Asset Quality
Effective Tax Rate 33.2 27.9 28.4 30.0 NPL / Total Gross Loans 4.7 4.8 6.0 5.8
Business Mix NPL / Total Assets 2.9 2.8 3.8 4.0
Net Int. Inc / Opg Inc. 97.0 90.1 93.9 94.2 Capital Strength
Non-Int. Inc / Opg inc. 3.0 9.9 6.1 5.8 Total CAR 22.3 20.0 19.2 19.0
Fee Inc / Opg Income 4.4 5.5 4.5 4.3 Tier-1 CAR 20.0 17.7 17.2 17.3
Oth Non-Int Inc/Opg Inc (1.4) 4.4 1.6 1.5 Growth
Profitability Total Net Loans 23 19 20 18
ROAE Pre Ex. 29.1 28.2 28.0 30.0 Customer Deposits 18 28 10 9
ROAE 29.1 28.2 28.0 30.0
ROA Pre Ex. 3.3 3.1 3.2 3.7
ROA 3.3 3.1 3.2 3.7
Valuation Graph : PE
17.0
15.0
13.0
11.0
9.0
7.0
5.0
3.0
2003 2004 2005 2006
Price & Price Relative to Index
Rp
6,787.00
5,787.00
4,787.00
3,787.00
2,787.00
1,787.00
787.00
2003 2004 2005 2006
Relative Index
Bank Rakyat Indo (LHS) Relative JCI INDEX (RHS)
250
230
210
190
170
150
130
110
90
Source: Company, DBS Vickers
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