Throughout FY20, ASII booked an income of IDR 175 trillion; down by 26.2% compared to FY19. Without taking into account the gains from the sale of Bank Permata, net profit was depressed by 52.6% yoy. The agribusiness sector performed best, along with the increasing CPO price. Higher commodity prices and relaxed sales tax on luxury goods (PPnBM) for 4W vehicles are expected to boost ASII’s performance this year.
Throughout 2020, BMRI booked a -37.7% YoY net profit decline; to IDR 17.1 Tn (vs IDR 27.5 Tn in FY19). On top line side, non-interest income performed well, which grew by 4.9%. Facing 2021, the management will focus on the recovery of Net Interest Margin (NIM) and asset quality, with single digit credit growth target.
BBRI booked a decline in net profit to IDR 18.6 Tn (-45.8% yoy) throughout 2020. Net Interest Income (NII) dropped by 3.1% yoy and resulted in the decline of PPOP to IDR 59.6 Tn (-9.9% yoy). Meanwhile, BBRI also booked a significant increase in provision expense by 44.3% yoy. Government support to recover the MSME sector as well as low cost of fund will be the supporting factors of BBRI’s performance in 2021.
BBCA still managed to book a solid performance amid the pandemic, marked by an increase in PPOP by 11.2% YoY. Net income in 2020 was down by 5% to IDR27.1 trillion, although it was still lower compared to other major banks. Credit quality and net interest margin which were well-maintained are good stepping blocks to face another challenging year in 2021. The company sets a conservative credit growth in the range of 4-6%.
BBNI’s profit fell by -78.7% to IDR 3.28 trillion in 2020. Loan Loss Provisions rose sharply to IDR 22.59 Trillion (vs IDR 8.84 Trillion in FY19), putting heavy pressure on the company’s profitability. However, BBNI was still able to book credit growth of 5.5% yoy with pre-provisions operating profit (PPOP) only decreased slightly by 1.8%. This year, the company targets single digit credit growth in the range of 6-9 percent.
SCMA managed to record a net profit of IDR 911 Bn in 9M20 (-8.1% yoy, +12.2% qoq), supported by recovery in ads spending and lower programming costs. While Free to Air TV remained the largest contributor in revenues, Online Digital segment had experienced an impressive growth with huge income potential in the future.
MIKA booked net income of IDR 570 Bn in 9M20 or a slight decline of –2.9% yoy. However, performance improved greatly on a quarterly basis with 3Q20 net income jumped 160% to IDR 253 Bn (vs IDR 97 Bn in 2Q20). Declining volume from patient admissions and visits were able to be balanced out by increases in average spending.
Indonesia officially entered into a recession zone after posting negative economic growth for 2 consecutive quarters. However, the JCI drew strength from US election where Joe Biden is projected to be the winner.
This is reinforced by the chance that GOP will retain a majority seat in the senate, which would block any policy plans that deemed unfavorable to business. Other than thatwe are trying to identify companies
which performed well in 3Q20.
ASII booked net revenue of IDR 40,554 Bn in Q3/2020 (up 13.3% QoQ) which amounts to a 9M20 total sales of IDR 130,349 Bn or down by 26.4% YoY. An encouraging sign of improvement was reflected in 3Q20 operating income which improved to IDR 2,896 Bn (+39.4% QoQ). This translates into a 9M20 net income of IDR 16,846 Bn (including gains from Bank Permata sale) or down by 17.3% YoY
