ARTICLE

BMRI – 1Q25 earnings; Inline Bank Mandiri (BMRI) delivered strong top line (11.5% yoy). Yet amid funding cost challenges, NII grew by only 5.5% yoy. Non-II solid growth of 15.3% yoy has been counterbalance by higher opex, bringing PPoP grew by only 3.8%. Despite small single-digit PATMI growth (3.9% yoy), 1Q25 PATMI of IDR 13.19tn came in inline at a run rate of 23.5%/21.6% (vs 23.31) of our and street forecast, or 0.16% vs our expectation and -1.68% vs consensus. Woth to note on quarterly basis, 1Q25 net income of IDR13.19 tn also inline vs our ‘25F for BMRI of IDR13.10 tn (consensus: IDR13.40 tn). The bank recorded robust 16.5% yoy loan growth, exceeding both industry trends (9.16% yoy) and our 10.4% yoy loan growth projection for BMRI, driven by strong corporate (20.0% yoy) and commercial (21.1% yoy) segments. Total TPF grew solid by 11.2% yoy. Yet, the growth was mainly driven by high funding cost (18.9% yoy, 12.0% qoq). CASA growth is well managed at 8.6% yoy driven by strong SA segment growth of 12.0% yoy. 1Q25 NIM declined to 4.8% on the back of rising deposit competition and lead to a higher funding cost. The bank saw a higher increase in CIR driven by increasing personnel expenses. Overall profitability remains well managed in our view, despite mild declined in RoE (73bps yoy, 64bps qoq). On risk metrics, we like the steady gross NPL at 1.17%, with an improvement in credit cost to 0.88% vs 1.05% in 1Q24. Comments : Maintain BUY BMRI GGM based-TP of IDR8,180 (‘25F P/B of 2.3x - UR) while currently traded at 1.5x’25F P/B, or slightly above its -1SD historical mean of 1.4x. (Source: Company, KBVS Research).