Indonesian bank, Sector Outook, CLSA

Manageable risk
Regulatory risks have overshadowed the Indonesian banks. While Bank
Indonesia (BI) has discussed measures on normalizing spreads, we
believe implementation will be challenging. During our talks with BI, it
became clear that their goal is to create higher efficiency in the banking
system. Intensive discussions between BI and banks are being carried
out and we expect banks to have time and room to maintain profitability.
We maintain our view that contraction in margins will be minimal and
reiterate our BUY call on BBRI.

Bank Mandiri (Persero) (BMRI.JK), Bond Yield and Key Takeaways from Analyst Day, Citi

Bank Mandiri (Persero) (BMRI.JK)
Bond Yields and Key Takeaways from Analyst Day
 3M yields at record low — In today’s auction, 3M Tbill yields declined to a record low
of 1.69% (prev. 1.92%). Against our base case of 4% for 2012, a sustained low yield
could impact earnings by 10%. If bond yields remain low, they could overshadow the
progress made by the bank in building and expanding its business.