Bank Rakyat Indonesia's loan growth pegged at 18% in 2014

Will it stay ahead of peers?

According to Maybank Kim Eng, it expects Bank Rakyat Indonesia to stay ahead of peers with 8% NIM and 18% loan growth in 2014.

Here's more:

Our revised forecast implies 14% EPS growth. The changes were mainly based on a higher loan growth assumption. BRI is now one of our top picks in the banking sector.

Escaping margin pressure. Our recent conversations with BRI suggest the bank was able to escape NIM compression in 4Q13. High growth in CASA was the key factor in making CoF hike more manageable.

On top of that, the profile of its micro borrowers allowed the bank to pass on rising deposit rates.

We think there is a good chance that BRI will deliver stronger than consensus 12% EPS growth for 2014-15.

We expect BRI to stay ahead of peers with 8% NIM and 18% loan growth in 2014. The bank’s effort to boost its retail funding has provided it with stronger low-cost deposit base to hold up NIM far ahead of the sector’s 5.5% average. Supported by new micro-segment officers, BRI should be able to deliver above par loan growth.

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