BMRI - Winning Combination: Robust 5M26 Earnings and Attractive Valuation

KBVS Update 
Monday, 15 June 2026

BMRI: Winning Combination: Robust 5M26 Earnings and Attractive Valuation
(Maintain BUY; GGM TP: IDR5,660)

* Bank-only net profit surged +18.6% YoY (May26: +17.9% YoY, +17.6% MoM), locking in 41.3%/40.7% of our and consensus ‘26F and beating the 5YR historical average 35% run-rate. Total loans spike +20.6% YoY, balanced by a +22.0% YoY TPF growth (CASA +11.9%). CoC improved +20 bps YoY, to 0.5% vs 0.7%, CIR dropped and annualized RoE came strong at 22.8%.

* Legacy low rates dragged 5M26 NIM down 30 bps YoY to 4.4% while BMRI held a rock-solid asset mix (68.5% loans, 13.2% securities amid trending up yield). However, BI’s recent 75 bps rate hike is a game-changer, rapid loan repricing will alleviate margin pressure, positioning BMRI to comfortably hit or exceed its 4.5%–4.7% FY26 guidance.

* A sentiment-driven -31% plunge dragged the stock to IDR3,710 from its YTD26 high-low, deeply disconnected from fundamentals and trading well below our GGM stress test floor of IDR4,120. Maintain BUY GGM-based TP of IDR5,660 (1.8x '26F P/B), currently (1.4x) at slightly above -2SD of 1.2x ‘26F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research