Bank Indonesia policy of easing loan to value (LTV) is predicted to give advantage for Bank Mandiri Tbk (BMRI), Bank Central Asia Tbk (BBCA), and BNI Tbk (BBNI). The mortgage loan growth on these banks will be boosted into double digits.
BI eased the payment requirements for the first home purchases from 20% to 15%. The deposit for second purchases is lowered from 25% to 20% while the deposit for the third purchases onward drops from 30% to 25%.
BCA Sekuritas mentioned seven big banks that offered mortgage loan to fulfill the requirements to get the easing LTV because their mortgage non-performing loan (NPL) is under 5%. “BBCA, BBNI, and BMRI that have the concentration on mortgage loan in the middle upper segment get the largest profits because the house buyers for second purchases could get the mortgage loan liquidity more quickly,” said BCA Sekuritas.
BMRI’s mortgage loan only grew by 5% to 27,65 trillion IDR per June 2016. BBNI recorded the mortgage loan growth by 7,5% to 35,58 trillion IDR on the first term of 2016. And also BBCA recorded the mortgage loan growth by 8,47% to 61,71 trillion on the first term in 2016.
BCA Sekuritas recommended BUY for BBCA with a target price of 15.243 IDR and BUY for BBNI with a target price of 6.090 IDR. For BMRI, BCA Sekuritas recommended HOLD with a target price of 10.502 IDR. (*)
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