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STOCKS NEWS INDONESIA-Bank Rakyat drops on 9-month results
Shares in the world's biggest micro lender, PT Bank Rakyat Indonesia fell 2.7 percent on Thursday after it reported nine-month results on Wednesday.
"Loan growth remained weak at 15 percent year-on-year (yoy) vs. the sector's 24 percent. Combined with falling NIM and rising costs, nine-month's pre-provisioning operating profit dropped 2 percent yoy to form only 68 percent of our full-year 2012 forecast," Jakarta-based CIMB analyst Mulya Chandra said in a note on Thursday.
"Provisioning saved the day, but this appears unsustainably low," the analyst said.
The bank's nine-month net profit rose 24.7 percent to 13.01 trillion rupiah compared with 10.43 trillion in the same period a year earlier, the company said in a statement to the stock exchange.
CIMB raised Bank Rakyat's target price to 7,400 rupiah from 6,600 but kept its 'underperform' recommendation.
UBS Investment Research raised the bank's target price to 8,900 rupiah from 8,500 and kept a 'buy' recommendation, citing growth recovery in micro loans, salary-based loans, the small business segment and better-than-expected operating expense.
At 12.47 pm the stock was down 1.35 percent at 7,300 rupiah, with the second biggest turnover as 49.3 million shares changed hands, while the broader Jakarta Composite Index was down 0.69 percent.
1327 (0627 GMT) (Reporting by Andjarsari Paramaditha; Editing by Anupama Dwivedi)
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