|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.2100 - 0.2230|
|52 Week Range||0.1200 - 0.3500|
|Beta (5Y Monthly)||0.57|
|PE Ratio (TTM)||11.67|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 24, 2019|
|1y Target Est||N/A|
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.The worst crisis in more than two decades among Indonesia’s smaller companies will boost loan losses and curtail profit at the nation’s largest lender, according to PT Bank Rakyat Indonesia Finance Director Haru Koesmahargyo.Bank Rakyat expects more than 10 million customers in its core segment -- micro, small and medium enterprises -- to be affected by the Covid-19 outbreak, Koesmahargyo said. With more and more borrowers seeking to restructure their loans and delay payments, the lender expects its bad loan ratio to edge higher this year, squeezing its profit margin, he said.The bank is deferring principal and interest payment on its loans to companies and has already restructured 101 trillion rupiah ($6.8 billion) of debt extended to 1.4 million of the borrowers. It may have to revamp more loans if the pandemic, which has so far killed nearly 1,391 people in Indonesia, lasts much longer, Koesmahargyo said.“MSME’s want to work, do business and sell their goods, but to whom? People stay at home and don’t want to spend,” Koesmahargyo said in an interview last week. The smaller businesses fared much better during the Asian financial crisis of 1997-1998, because they were able to continue operating, he added.With the economy hit hard by the pandemic, Indonesian authorities have taken unprecedented emergency fiscal measures, including abandoning a budget deficit ceiling enacted in the wake of the Asian financial crisis, to lessen the impact of the outbreak. The nation’s large banks are well capitalized today to withstand near term pressure from loan defaults and falling profit margins, a sharp contrast to their weak finances that forced them to seek state bailouts during the Asian crisis.With the micro, small and medium enterprises accounting for more than 50% of Bank Rakyat’s loan book, the highest among Indonesia’s top four banks, it may be impacted more than its peers even though the government has stepped in with financial assistance to stem job losses. While the lender sees the bad loan ratio rising to 3.7% this year, an increase from previous estimate of 2.5%, it expects the net interest margin to drop to 5.5% from a previous guidance of 7%.Challenging TimesHe declined to give a forecast for full year profit but said he expects “an unusually below average performance in the bottom line by the end of 2020.”The bank, which uses more than 30,000 agents for door-to-door canvassing and underwriting of loans from SME sector, is encountering resistance from customers to its push for technology in the new era of social distancing, Koesmahargyo said. “We are seeing double-digit increase in the number of digital transactions during partial lockdowns, but we still have so many customers who prefer face-to-face interactions with our agents or officers,” he said.With Indonesia’s economy now set to expand 2.3% at best this year, Bank Rakyat has slashed its loan growth forecast to 5% this year from a range of 10%-11% set in January. Its net income was little changed in the first quarter even as lending grew 10% from a year ago.The sliding profit margin this year may depress Bank Rakyat’s return on equity, which was the highest among Southeast Asian banks at 18.4% in 2019, according to data compiled by Bloomberg. The bank may also see its net income dive by more than 25% this year as a result of loan restructuring, Suria Dharma, an analyst at PT Samuel Sekuritas Indonesia, said in a research.Bank Rakyat expects to see its clients benefiting from 34.2 trillion rupiah set aside by the government as loan subsidies for micro, small and medium enterprises. The lender also has around 90 trillion rupiah of government bonds that it can use to obtain liquidity from the central bank, Koesmahargyo said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- BNP Paribas SA’s insurance arm is in talks to buy a significant minority stake in PT Bank Rakyat Indonesia’s life insurer, according to people familiar with the matter.BNP Paribas Cardif SA submitted the highest bid for a stake in PT Asuransi BRI Life, the people said, asking not to be identified because the matter is private. Other bidders including FWD Group Ltd., backed by Hong Kong billionaire Richard Li, remain interested in acquiring the share, the people said.Bank Rakyat Indonesia, the country’s oldest lender, had revived earlier this year its plan to sell a stake in its life insurance unit for about $500 million, Bloomberg News reported in March. A transaction would involve a so-called bancassurance partnership, which allows an insurer to sell its products through the bank’s branches, the people have said.An agreement could be reached within the next few weeks, the people said. Talks are ongoing and the companies could decide against pursuing a transaction, they said.Representatives for Cardif and FWD declined to comment, while a representative for Bank Rakyat Indonesia said the bank is still studying the matter internally.This would be at least the third attempt by state-owned Bank Rakyat to sell a stake in the insurer. The lender tried to dispose a 40% stake in BRI Life in 2015. At that time, FWD and BNP Paribas Cardif were already among parties vying for the holding, Bloomberg News had reported. In 2018, Morgan Stanley was hired to advise on the sale only to see the process put on ice again last year.Shares of Bank Rakyat Indonesia have fallen 44% this year, giving the lender a market value of about $20.5 billion.Cardif reported a pre-tax net profit excluding some items of 1.7 billion euros ($1.8 billion) last year, a 16% increase from a year earlier. It had 260 billion euros in assets under management as of the end of 2019, and a presence in Europe, Asia and Latin America.(Updates to add Bank Rakyat Indonesia’s share price in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
* Malaysia sees best week since Oct. 2015 * Indonesia sole weekly loser * Philippines leads gains, up 4.8% By Arundhati Dutta April 17 (Reuters) - Southeast Asian stock markets closed up on Friday and all bar one logged weekly gains, as reports emerged that U.S. President Donald Trump was planning to gradually reopen the country's economy. Reports that patients with severe COVID-19 symptoms had responded positively to a drug made by U.S. company Gilead Sciences also helped boost investor sentiment Markets appeared to shrug off data showing that China's economy shrank in the March quarter for the first time on record, although the country expects performance in the second quarter to be much better as pent up demand is unleashed. "A potential treatment for COVID-19 that is a proven compound and available immediately is clearly the bigger story and rightly so," said Jeffrey Halley, market analyst at OANDA, in a note.
(Bloomberg) -- A top-performing JPMorgan fund focused on emerging-market stocks trimmed its bet on Tencent Holdings Ltd., selling shares of what was its largest holding in July as the Chinese technology company struggles to stage a comeback.JPMorgan Chase & Co.’s $6.5 billion Emerging Markets Equity Fund, which outperformed 94% of peers this year, reduced its position in Tencent by 14% as of Oct. 31, data compiled by Bloomberg show. Shares of Tencent, the largest company in Hong Kong’s Hang Seng Index by market capitalization, fell to a nine-month low on Oct. 30. JPMorgan declined to comment.Tencent has been trying to recover from 2018 losses after a nine-month Chinese freeze on game approvals gutted its most profitable business last year. Yet the stock dropped 16% in U.S. dollar terms from an April high as China’s economic slowdown weighed on efforts to revive growth. Even so, 50 of the 57 analysts tracked by Bloomberg recommend investors buy the stock.While trimming its Tencent exposure, its fifth-biggest holding, the JPMorgan fund boosted wagers on Budweiser Brewing Company APAC Ltd., ITC Ltd. and Bank Rakyat Indonesia Persero Tbk PT, the data show. The fund also added 2% to its position in Alibaba Group Holding Ltd., currently its top holding.(Updates to add chart)\--With assistance from Sofia Horta e Costa and Stephen Tan.To contact the reporter on this story: Andres Guerra Luz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Carolina Wilson at email@example.com, Alec D.B. McCabe, Philip SandersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Traveloka, Southeast Asia’s largest online travel startup, is getting into financial services.The startup backed by Expedia Group Inc. and JD.com Inc. will issue a credit card with Indonesia’s PT Bank Rakyat Indonesia Persero Tbk linked to its booking services. The travel app is targeting many users across the Indonesian archipelago who have little or no access to traditional banking or reliable internet.Founded by three engineers in 2012, Traveloka -- said to be valued at around $2 billion in 2017 -- has expanded across Southeast Asia by making it easier for consumers to book flights and hotels within the region. It’s raised at least $500 million from investors including Hillhouse Capital and Sequoia. Henry Hendrawan, president of Traveloka operations, said the card was one facet of building a fintech business to complement its travel, accommodation and lifestyle services.“In anything we do in financial services, we will always look to go with strong partners,” Hendrawan said in an interview, adding that he expects to unveil more products and partners in the near future. “This is a perfect example.”With a population of more than 620 million and growing middle class, Southeast Asia is expected to see its online travel market almost triple from about $30 billion in 2018 to $78 billion in 2025, according to Google and Temasek Holdings Pte. By 2025, 57% of bookings will be made online, up from 34% in 2015.Traveloka operates in Indonesia, Malaysia, the Philippines, Thailand, Singapore and Vietnam. Customers will be able to use its card in Indonesia and around the world for both online and offline transactions via Visa Inc.’s network.To contact the reporter on this story: Yoolim Lee in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.