Best bank
Bank Mandiri Best equities house
Danareksa
Best debt house
CSFB
Bank Mandiri is Indonesia?s largest and strongest bank on almost any measure. Its return on average equity, at 35.7% for the first quarter of 2004, is the highest of any major bank, and its cost-to-income ratio, at about 47%, is one of the lowest. But Bank Mandiri, formed from four defunct banks renationalized, is also the new cleaned-up face of Indonesia, exemplified by the success of its IPO in 2003.
A loan scandal in early 2004 dampened the euphoria surrounding the bank?s turnround. But Mandiri was in familiar company, with several other banks suffering similar problems.
Despite the hiccup, Bank Mandiri?s financial position remains solid. A 27% increase in profit in 2003 even helped the state sell a further 10% stake in the bank. Assuming no further loan scandals or other corrupt practices, the future for Bank Mandiri and Indonesia?s banking sector looks promising.
Danareksa was Indonesia?s dominant equity house in a year when the successful flotation of Bank Mandiri reopened the market. Danareksa closed nine issues and raised almost $500 million in the 12 months under review, a market share of more than 23%. Danareksa, still a state-owned entity, has long been Indonesia?s local investment banking leader and barely a deal passes without its involvement. It underwrote the $358 million IPO of Bank Mandiri in July 2003 and the $300 million IPO of Perusahaan Gas Negara.
CSFB was the second placed international bond house in Indonesia, in terms of amount of capital raised, just behind rival Deutsche Bank, having raised a total of $517 million. But CSFB closed more deals and led the international league tables in terms of wallet share. Key transactions were the $150 million Perusahaan Gas Negara global bond, which achieved the longest tenor and one of the lowest pricings of any Indonesian corporate since the Asian financial crisis, a $350 million bond for PT Excelcommindo Pramata, the largest Indonesian issue since the crisis, and the $250 million global bond offering from PT Medco.
