Results Snapshot - DBS Vickers

Bank Rakyat Indonesia: Buy; Rp5,750; TP Rp6,950; BBRI IJ
Strong result even without PSAK 50/55 adjustments
• 4Q10 net profit beat our and street estimates only because of Rp2.4tr PSAK 50/55 adjustments
• Likely to reduce dividend payout to below 30% pending AGM in May-11; coupled with accumulated profit (largely from FY10) BBRI may not need to raise sub-debt in 2H11
• Maintain Buy and Rp6,950 TP; BBRI remains our top pick; FY11-12 forecasts are under review with an upside bias.

Bank Mandiri: Hold (downgrade from Buy); Rp6,800; TP Rp7,100; BMRI IJ
Boosted by ‘other’ operating income
• 4Q10 net profit of Rp2.8tr took FY10 earnings to Rp9.2tr; in line with our forecast but 5% above consensus
• Earnings were driven by ‘other operating income’, largely collections of written-off loans
• Full 2011 targets to be disclosed in 1Q11; may cut dividend payout to below 30%
• Downgrade to Hold, TP maintained at Rp7,100.

Bank Tabungan Negara: Buy; Rp1,680; TP Rp2,500; BBTN IJ
Strong profit despite write-backs
• 4Q10 net profit of Rp319bn takes FY10 earnings to Rp916bn, beating our and consensus estimates
• Earnings were driven by provision write backs; NPL ratio improved to 3.2%
• Maintain Buy and Rp2,500 TP

Perusahaan Gas Negara: Buy; Rp3,900; TP Rp4,815; PGAS IJ
Solid growth prospects
• FY10 core earnings were within expectations
• Larger capacity and potential gas price hike are key catalysts
• Maintain Buy for attractive valuation with superior yields and ROE.