BMRI - 1H25 earnings miss on one-time opex spike; below

KBVS Update
Wednesday, 24 Sep 2025

BMRI: 1H25 earnings miss on one-time opex spike; below
(Maintain BUY; GGM TP: IDR5,660)

* BMRI delivered a strong top-line expansion of 12.9% yoy. A major steady challenge was the pressure on funding costs, which moderated the growth of NII. The cost to income spiked, a key reason for the earnings miss resulting in a 7.9% yoy decrease in PATMI. In all, 1H25 earnings came in below ours and consensus expectation.

* BMRI's loan book grew by an impressive 11.0% yoy, significantly exceeding its guidance, the broader industry's growth and our ‘25F forecast.

* Despite the profitability challenges, key risk metrics remained strong. * The gross *NPL was well-managed at 1.08%. The CoC improved to 0.77%, a 21bps improvement from 1H24 and better than the management's guidance.

* BMRI adjusting its ‘25F guidance and we fine-tune our forecast to accommodate the one-time spike opex. Maintain BUY with GGM-based TP of IDR5,660 pegged at 1.7 x ‘25F P/B, while currently trading at 1.3x ‘25F P/B or below its -1SD hist. mean.

Regards,
Akhmad Nurcahyadi - KBVS Research