Stock for long term I recommend is Indonesia banks, their profit margin still large and the country is quite safe fundamentally with expected growth 5-6 percent per year.
PE ratio is still much better than even Indians stocks
Erick Thohir Proud! State-owned Banks Print Big Profits When Difficult
MARKET - Romys Binekasri, CNBC Indonesia
01 August 2022 17:28
Jakarta, CNBC Indonesia - Minister of State-Owned Enterprises (BUMN) Erick Thohir appreciates the financial performance of state-owned banks or the state bank association (Himbara) during the first semester of 2022. This performance can be achieved in the midst of global economic challenges that have the potential to weaken.
This can be seen from the net profit achievement of PT Bank Rakyat Indonesia (Persero) Tbk or BRI which touched Rp 24.88 trillion during the first semester of 2022 or grew 98.38% year on year (yoy).
Then there is Bank Mandiri with a jump in net profit of up to 61.7% yoy or Rp. 20.2 trillion in the first semester of 2022 and BTN which in the first five months managed to record a profit of Rp. 1.06 trillion, up 49.19% yoy from Rp. 716.44 billion.
"Today, we can see that BNI's profit has increased by 75% from Rp 5 trillion to Rp 8.8 trillion in the first semester of 2022. Even if we look at the organic performance growth based on digital services carried out by BNI, it has resulted in Pre-Provisioning Operating Profit (PPOP) or operational income before a strong and highest reserve in the history of BNI's performance. Of course this is an extraordinary achievement from the pride of the country's banks," Erick said in Jakarta, Saturday (29/7/2022).
Erick assessed that the soaring net profit of state-owned banks was proof of the transformation carried out by the directors and commissioners that contributed greatly to improving performance.
Erick said that the transformation, both from business processes to digitalization, made the way SOE banking work more efficiently. This can be seen from the decrease in operating costs, maintained fund expenses, and credit quality that continues to improve.
"Thank God, thanks to transformation and digitalization, state-owned banks can work more effectively and efficiently with the results that we can see together today," continued the man born in Jakarta.
Erick said Himbara's achievement also departed from the commitment to refocusing the business by having a different segmentation. Erick put BRI as a people's bank that focuses on financing for MSMEs and rural communities.
Kinerja tersebut bisa dicapai di tengah tantangan perekonomian global yang berpotensi melemah.
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