Banks: Beware of Catching the Falling Knives (NEUTRAL)
Bank valuations have derated, but PBV valuations have yet to hit bottom in the past two downcycles, i.e., 2015-2016 and 2019-2020.
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Banks: Liquidity May Ease Faster, but Stable Rupiah Is Needed for the Rally to Sustain (NEUTRAL)
An early rate cut may ease liquidity pressure faster, while some loans and marketable securities are at risk of lower yield.
431 Views
Equity Strategy: Potential Winners from BI’s Surprise Rate Cut
The period of policy rate cut was historically positive for JCI, which delivered 21% return during FY16-18 125bps rate cut.
451 Views
Banks: FY25 Outlook: Less money to lend, save, and repay (NEUTRAL)
We expect a moderate earnings growth of 5.8% in FY25F (from 6.7% in FY24F) due to slower loan growth, still tight liquidity, and higher CoC.
310 Views
Banks: Expansion of SAL utilization: for better or worse? (OVERWEIGHT)
PMK 88/2024 could add liquidity for the SOE banks, but with a CoF of c. 4.8%, we do not see it as plausible for the banks currently.
443 Views