Financials

Report by Galliano's Financials Research

Victor Galliano’s top pick following a review of several Indonesian commercial banks - Mandiri is well geared (with its exposure to MSME credit) to continued GDP recovery; it ranks well re. pre-provision profitability, and post-provision profitability should improve going forward; its return prospects are helped by healthy NPL coverage for its delinquency ratio which implies further potential for lower prospective cost of risk. Victor also likes Bank Rakyat and sees Bank Permata as a potential “turn around” stock, especially if management can improve credit quality and keep lowering its cost of risk to boost returns.