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Indonesia

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.

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