Nov 18 stats: Stable NIM due to elevated LDR; smaller banks have raised rates
OVERWEIGHT - Maintained
Author(s): Jovent GIOVANNY +62 (21) 3006 1727, Timothy HANDERSON, Leonardo TUKIMAN
System loans grew 12% yoy (flat mom) in Nov 18 while deposits grew slower at 7% yoy (flat mom) – LDR remained high at 93% indicating tighter liquidity.
NIM remained stable despite higher rates from small-mid sized banks in Nov (c.20bp vs. 7bp mom increase for big banks).
Asset quality was resilient despite a slight mom uptick in SML. We stay sector Overweight with BBNI as our sector top pick.
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