UPDATE 1--Bank Mandiri Q4 net profit falls 14 pct-govt

* Bank Mandiri 2010 net profit seen at 8.6 trln rph-govt
* Mandiri Q4 profit at 2.22 trln rph-Reuters calculation
* Bank Rakyat 2010 net profit at 8.5 trln rph-govt
* Bank Negara 2010 net seen at about 2 trln rph-govt

PT Bank Mandiri , Indonesia's largest lender, posted a 14 percent slump in fourth quarter 2010 net profit, as higher provisioning may have squeezed earnings, according to Reuters calculations based on government figures.

The drop comes as investors have reduced their bullishness on Indonesian assets this month on worries over inflation and high valuations, after years of sustained profit growth when Indonesian lenders took advantage of record low interest rates and growing consumer demand in Southeast Asia's biggest economy.

State enterprises minister Mustafa Abubakar said Mandiri earned 8.6 trillion rupiah ($952.7 million) in 2010, in line with expectations by analysts polled by Thomson Reuters I/B/E/S for 8.657 trillion rupiah. Full year profit was up 19 percent from 7.2 trillion rupiah in 2009.
Mandiri posted 2.2 trillion rupiah of net profit in the fourth quarter, according to Reuters calculations based on the published nine-month financial result. 

"The figure is expected, I suspect Mandiri has a higher provisioning in the last quarter," said Teguh Hartanto, a senior banking analyst at PT Bahana Securities.

Mandiri's CEO Zulkifli Zaini told Reuters earlier this week that he saw 2011 net profit up by at least 2 trillion rupiah on 2010. 

Mandiri has the most diversified loan book composition among the top banks, giving investors exposure to the entire credit demand spectrum said Nomura, on raising the bank to "buy" from "neutral" in a note on Friday.

Mandiri's stock traded down 0.8 percent by 0706 GMT while the broader market fell 1.2 percent. The stock gained 38 percent in 2010, underperforming the index's 46 percent rally.
PT Bank Rakyat Indonesia , the second biggest lender, posted 8.5 trillion rupiah of net profit in 2010, Abubakar said, up 16 percent.

This failed to meet expectations for full-year 2010 net profit of 9.037 trillion rupiah, according to the consensus of analysts polled by Thomson Reuters I/B/E/S.
"It shows that margins were squeezed due to greater competition in microlending," Hartanto said.

BRI's Q4 net profit fell 8 percent to 1.8 trillion rupiah from the year-ago period, according to Reuters calculations based on published first nine month results.

Abubakar also said that PT Bank Negara Indonesia , the fourth biggest bank, was seen posting 2 trillion rupiah of net profit in 2010, down from 2.48 trillion a year earlier.

This would mean the bank may have failed to meet its expectations for full year 2010 net profit to rise 80 percent, and would be well below analyst forecasts for 3.868 trillion rupiah, according to Thomson Reuters I/B/E/S.

BRI and BNI shares traded down 2.9 percent and 1.5 percent respectively, to underperform the broader market. ($1 = 9027 Rupiah)

Source: Reuters