Saturday, October 22, 2011

INDONESIA - BANKING - Bank Mandiri to Keep Growing

livetradingnews.com - Bank Mandiri, Indonesia’s largest lender by assets, predicts lending to grow 21%, the company said on Friday.
Bank Mandiri loan growth target would be slightly lower than the target made by Bank Indonesia last week.
Shayne Heffernan has issued a Strong Buy PT Bank Mandiri (Persero) Tbk in 2010 with a Price target of 9000RP by 2012. (source)


“If the economic growth expands at the minimum pace of 6 percent next year, we can achieve that loan growth target,’’ said Pahala Mansury, the bank’s chief financial officer, at a conference in Bali. Pahala did not provide details on Mandiri’s loan growth target for this year.
As concerns of a global economic slowdown heighten, Halim Alamsyah, a deputy governor at Bank Indonesia, said last week that lending growth by Indonesia’s 120 commercial banks would slow next year.
Loan growth is forecast to reach 23 percent to 24 percent in 2012. That compares with a 24 percent to 25 percent growth rate for this year, as predicted by BI governor Darmin Nasution earlier this month.
Pahala said loan demand by Indonesian consumers and businesses would remain strong next year as companies sought funding for expansion.
The government forecast the economy to expand 6.7 percent in 2012, from an estimated 6.5 percent this year.
“We will continue to boost our market capitalization in the local market, extending our reach and networks and improve our units,’’ Pahala said.
Pahala said Bank Mandiri, whose market capitalization is valued at Rp 149.3 trillion ($16.9 billion), is forecast to increase that figure to Rp 225 trillion by 2014.
Bank Mandiri expects to open a new branch in Shanghai later this year as part of the lender’s efforts to boost its business and attract Indonesian companies operating in China.
Shares of Bank Mandiri rose 0.8 percent to Rp 6,450 on the Indonesia Stock Exchange on Thursday.
5 Indonesian Banks now rank among the world’s 500 most valuable banking brands, according to consultancy company Brand Finance.
The Indonesian banks on the list are Bank Rakyat Indonesia, which came in 195th, followed by Bank Mandiri (208), Bank Central Asia (225), Bank Negara Indonesia (256) and Bank Danamon (311).
BRI, the second-largest bank in the country by assets, moved past Mandiri, the leader by assets, on the strength of its brand value. BRI’s value was estimated at $682 million, up from $455 million, while Mandiri improved to $638 million from $473 million. BRI had a brand rating of AA- while Mandiri was rated A.
BCA had the highest market capitalization of the ranked Indonesian banks and its rating matched that of BRI, but its brand value was third among its peers. BNI surged into the ranking, meanwhile, outstripping Danamon in all three categories.
Among the factors supporting the growth of Indonesia’s banking sector, the survey said, are growing consolidation in the sector, the growth of Islamic finance, better access to loans for micro, small and medium enterprises, and the growing strength of lenders in rural areas.
Those factors allow national banks to compete with international brands, it said.
Brand Finance also said Indonesia was relatively immune to the global financial crisis thanks to stable growth and strong domestic markets. The survey was published on Tuesday in The Banker magazine.
Brand Finance calculated brand value using the royalty relief method, which has been validated by the International Standard Organization. It estimates the price of royalties to be paid by a company executive to the company owner of the brand.

Source : http://www.livetradingnews.com/bank-mandiri-to-keep-growing-57616.htm  - Oct 21, 2011

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