The establishment of Regional Development Bank of West Java by PT Banten Global Development (BGD) followed by the acquisition of PT Bank Pundi Indonesia Tbk (BEKS) through a limited public offering (LPO) IV with Rights Preemptive (ER) will bring a new competitor for PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk (BJBR). Will BPD Banten undermine the customer segments that have been served by BJBR?
Jerry Richard, an analyst at BNI Securities, said BJBR’s performance is still quite decent following the entry of the company into the micro credit segment and opportunities for growth in consumer loans is quite high. “We expect BJBR will be able to grow its credit by 14% in 2016 despite macroeconomic conditions have not really recovered,” said Richard. BNI Securities maintain BJBR stock price target at USD 990. In the first trading session on Friday (17/9), BJBR stock price was at Rp 1,005, lower than yesterday’s close at Rp 1,015.
Based on BJBR’s Investor Relations, the current value of loans extended to the Government of Banten Provincial reached Rp 5 trillion, while third party funds (DPK) amounted to Rp 6 trillion. This is below 10% of total loans and DPK BJBR. Should all credit and DPK from the Provincial Government be withdrawn from BJBR, BNI Securities predicts the impact on the performance of BJBR will not be significant. Moreover, the Government is not planning to sell 5.37% stake in BJBR. (*)
Add Comment