Bank Rakyat Indonesia (BBRI IJ): 1Q19 results: Within expectation but with larger margin compression

Bank Rakyat Indonesia (BBRI IJ)
Analyst: Yap Swie Cu
HOLD-UPF / TP: IDR3,900 (-11.4%)
1Q19 results: Within expectation but with larger margin compression
• Lower credit cost supports net profit growth
• Margin contraction reduced the impact of resilient expansion
• Resilient lending expansion balanced by equal funding growth
• Seasonal pick up in 1Q19 NPL ratio
• Valuation and recommendation