Ciptadana Securities - Upgrade Bank Jatim Target price 530

Date: 29 october 2014

Categories : IRU


PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) recorded 9.1% yoy net income increase to Rp743 bn in 9M14. This come relatively in line with our estimate (70% of our FY14 net income estimate). On a quarterly basis, the bank experienced a drop of bottom line growth, as net income decreased by 13.6% qoq from Rp231 bn to Rp200 bn. The increase of non interest operational expense (mainly provision for bad loans) by 21.7% in 9M14 had a significant effect on the bottom line despite the bank’s ability to increase its net interest income by 19.8%, a respectable growth in the mid of challenging economic and interest rate conditions. BJTM’s net interest income during the same period increased by 19.8% yoy to Rp 2.1 tn, quarterly it rose by 8.2% qoq from Rp 674 bn to Rp730 bn. The bank’s loan book grew by 21.2% yoy and deposit grew by 24.5% yoy in 3Q14. Read more