Bank Mandiri (BMRI IJ) (Buy) - May-26 results

May-26 results

BMRI has released its bank-only May-26 results, reporting headline profit of IDR5.3tn (+18% m-m and y-y). This brings YTD May-26 profit to IDR23.3tn (+19% y-y) – accounting for ~41% of our FY26F projection, on track to meet or exceed our current FY26F earnings projection at the consolidated level. We attribute these results to the following: (1) stable net interest margin (NIM) of 4.0% (-20bp y-y), largely driven by a stable asset yield of 6.2% (-70bp y-y), and improved funding cost of 2.4% (-50bp y-y); (2) improved cost ratio of ~33.6% (-140bp m-m; +100bp y-y), which we credit to the bank’s ongoing investments in technology; and (3) the low credit cost of 50bp (-20bp y-y), which reflects the bank’s healthy asset quality.

Net interest income at IDR6.9tn (+3% m-m; +11% y-y) brought YTD May-26 NII to IDR34.9tn (+10% y-y) – accounting for ~31% of our FY26 forecast. Headline PPOP reached IDR7.1tn (+14% m-m; +15% y-y), bringing YTD May-26 PPOP to IDR31.9tn (+14% y-y) – accounting for ~34% of our FY26 forecast — supported by continued cost discipline (monthly CIR at 33.6% in May, improving from 35.0% in Apr-26). Write-off trends in May-26 were showing improvements, while credit costs remained stable or showed a slight decrease. This might suggest provision releases, which resulted in a lower LLR of 2.4%.

On the balance sheet, the bank booked loan and deposit growth of +21% and +22% y-y, respectively, which brought LDR to 91.9% (-110bp y-y). Loan growth was driven by wholesale expansion, government-related programs (Agrinas, not listed) and non-bank SOEs. However, we expect loan growth to normalize in subsequent months towards management guidance of 7-9% in FY26E . Key observation on deposits growth came from time deposits (TD) and current account (CA) which rose +57% and +14% y-y, respectively. These, in our opinion, came from the government and Danantara placements.

Valuation and risks

We derive our TP of IDR6,000 using DuPont analysis with key parameters: a risk-free rate of 6.5%, an equity risk premium of 7.8%, growth of 11.0%, beta 1.09x and a CAR-adjusted ROAE of 18.0%. Our TP implies 1.7x FY26F P/B (vs 1.5x currently) and 9.7x FY26F P/E (vs 8.2x currently). Risks are worsening macroeconomic trends, tighter liquidity competition, and/or higher credit costs and opex growth.

Fig. 2: Monthly results

BMRI Monthly IDRbn	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25	Y-Y	vs FY26F	FY26F
Gross interest income	10,305	10,953	10,318	10,812	5%	5%	52,774	49,895	6%	30%	174,659
Gross interest expense	4,024	3,647	3,579	3,870	8%	-4%	17,917	18,198	-2%	30%	60,567
Net interest income	6,281	7,307	6,739	6,942	3%	11%	34,857	31,698	10%	31%	114,092
PPOP	6,177	8,987	6,229	7,100	14%	15%	31,857	27,931	14%	34%	93,189
Provision exp	799	(160)	710	710	0%	-11%	3,212	3,816	-16%	21%	15,355
Net profit	4,465	7,391	4,476	5,266	18%	18%	23,318	19,655	19%	41%	57,431
Comprehensive profit	4,867	11,073	2,321	5,047	117%	4%	20,965	21,297	-2%
MoM loan growth	0.1%	3.1%	1.3%	1.9%
MoM deposit growth	-0.6%	5.7%	-1.5%	4.0%
YTD loan growth	-0.1%	14.2%	3.5%	5.5%
YTD deposit growth	6.0%	26.2%	-1.5%	2.5%
YoY loan growth	13.6%	14.2%	18.5%	20.6%
YoY deposit growth	8.5%	26.2%	16.6%	22.0%
LDR	93.0%	89.3%	93.8%	91.9%
COF %	2.9%	2.4%	2.2%	2.4%			2.2%	2.7%
NIM (annualised)	4.2%	4.3%	3.9%	4.0%			4.0%	4.3%
Risk-adj NIM	3.7%	4.4%	3.5%	3.6%			3.6%	3.8%
LLR	3.0%	2.4%	2.4%	2.4%
CoC (annualised)	0.7%	-0.1%	0.6%	0.5%			0.5%	0.7%
CASA ratio	77.6%	70.8%	71.2%	71.2%
Monthly CIR	32.6%	26.2%	35.0%	33.6%
B/S ROAE (annualised)	23.0%	34.0%	20.8%	25.8%
B/S ROAA (annualised)	2.8%	4.1%	2.4%	2.8%
CASA growth yoy	5.6%	11.3%	6.5%	11.9%
Loan-to-CASA	119.9	126.2	131.9	129.2
BMRI B/S IDRbn	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25
Total assets IDRbn	1,922,574	2,228,097	2,245,101	2,306,267	3%	20%	4%	2%
Gross Loans IDRbn	1,309,682	1,497,109	1,550,179	1,579,944	2%	21%	6%	0%
LLR IDRbn	39,370	36,284	37,017	37,583	2%	-5%	4%	3%
Net loans IDRbn	1,270,312	1,460,824	1,513,163	1,542,361	2%	21%	6%	0%
Deposits	1,406,802	1,674,679	1,649,965	1,716,317	4%	22%	2%	6%
- CA IDRbn	580,626	639,852	620,509	663,770	7%	14%	4%	5%
- SA IDRbn	511,673	546,211	554,517	558,750	1%	9%	2%	-1%
- TD IDRbn	314,502	488,616	474,939	493,797	4%	57%	1%	20%
CASA IDRbn	1,092,300	1,186,063	1,175,026	1,222,520	4%	12%	3%	3%
Equities IDRbn	234,912	261,962	242,693	247,741	2%	5%	-5%	-9%

Source: Company data, Verdhana research

INVESTMENT RATINGS
A rating of ‘Buy’, indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of ‘Neutral’, indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of ‘Reduce’, indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of ‘Suspended’, indicates that the rating, target price, and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as ‘Not Rated’ or ‘No Rating’ are not in regular research coverage. Benchmark is Indonesia Composite Index (‘IDX Composite’). A ‘Target Price’, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part of the analyst’s estimates for the company’s earnings, and may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market in general.

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Rating Table

Rating Remains	Buy
Target price Remains	IDR 6,000
Closing price 11 June 2026	IDR 4,250

Research Analysts

Erwin Wijaya (erwin.wijaya@verdhana.id)

Tags: BANKS, Bank Mandiri, BMRI, BMRI JK, BMRI IJ, Erwin Wijaya

Bank Mandiri (BMRI IJ) (Buy) - May-26 results

May-26 results

Fig. 1: YTD May-26 y-y performance %

Fig. 2: Monthly results

Fig. 3: BMRI - 12MMA CoC vs 12MMA WO %

Fig. 4: BMRI LLR vs 12MMA WO %

Rating Table

Research Analysts

yudi Administrator

Bank Central Asia BBCA IJ - Buy - Solid YTD Jul-24 results

Bank Rakyat Indonesia -BBRI IJ- Buy - Towards more commercial micro

Bank Negara Indonesia BBNI IJ - Buy - Operating 1H24 results were below

Bank Rakyat Indonesia -BBRI IJ- Buy - YTD Jul-24 bank only results - steady progress

Bank Rakyat Indonesia -BBRI IJ- Buy - ROAE uptrend on positive micro trends

Bank Central Asia -BBCA IJ- Buy - Steady growth reiterate Buy new TP IDR13200

Bank Mandiri (BMRI IJ) (Buy) - May-26 results

Fig. 1: YTD May-26 y-y performance %

Fig. 2: Monthly results

Fig. 3: BMRI - 12MMA CoC vs 12MMA WO %

Fig. 4: BMRI LLR vs 12MMA WO %

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