Bank Mandiri, Indonesia's largest bank by assets, said its 2013 net profit rose 17.4% to 18.2 trillion rupiah (RM4.9 billion), backed by strong loan growth, beating analysts' estimates of 17.2 trillion rupiah. The company also plans for acquisitions in finance sector.
Bank Tabungan Negara booked net profit of 1.56 trillion rupiah in 2013, up 15% from 1.36 trillion a year earlier, driven by interest income and operating revenues.
Jakarta-based Bahana Securities raised its target price on Bank Mandiri to 9,000 rupiah and Bank Tabungan to 1,160 rupiah, maintaining its 'buy' recommendation for both lenders.
"Preliminary talks have begun on the potential M&A of BBTN with other SOE banks, including BBRI, BMRI and BBNI in order to provide synergies and improve its future operating performance, " said Teguh Hartanto, banking analyst at Bahana in a note on Monday.
"However, at this stage of the cycle, we think BMRI, currently seeking to penetrate the low-end segment with its micro financing, has a better chance politically of winning this M&A deal."
At 0258 GMT (10.58am MYT), Bank Mandiri's stock was up 2% at 8,900 rupiah, while Bank Tabungan's shares rose 1%. The broader exchange was up 0.5%, with the sub-index measuring banking sector shares up 1.28%. – Reuters, February 11, 2014.