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Jumat, 22 Juli 2011

CITI Indo BTN 2Q slightly below - Citigroup

* 2Q11 net profit -4% QoQ at Rp235bn, bringing 1H11 net profit +11% YoY at Rp480bn accoutning for 44% of consensus FY11 est'. Pick up in growth offset by deterioration in balance sheet and decline in NIMs.
* Fee income growth strong +36% YoY, 25% QoQ. Loan grew 22% YoY, but still below FY11 guidance of 27%, tho' mgmt remains confident in achieving their target. Subsidized mtge loan growth remains sluggish 4% QoQ, 12% YoY due to developers'
constraints.
* NIM declined to 5.24% (5.69% in 1Q11) due to lower loan yields and higher deposit costs. Gross NPL has gone up to 4.35% (4% in March)
* Salman maintains Sell ashigh LDR 111% and intense competition in mortgage lending likely hinder its ambitious growth plan. Trades at 12x PE & 1.9x PB for 2012.

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