PPERY - Bank Mandiri: Asset Quality And New Incoming CEO Are Key Issues To Watch
Elevator Pitch
Indonesia-listed PT Bank Mandiri (Persero) Tbk (PPERY) (PPERF) [BMRI:IJ] is currently trading at 1.65 times P/B representing a significant discount to the stock's historical 10-year average P/B of approximately 2.1 times. The stock also offers a consensus forward FY2020 dividend yield of 3.8%.
Notwithstanding the bank's attractive valuations, there are two key issues that could weigh on Bank Mandiri's share price in the near term. Firstly, there is a possibility of a deterioration in asset quality and increase in provisions going forward due to specific debtors Krakatau Steel and