BMRI - Earnings grew solid by 27.4% yoy
BMRI - Earnings grew solid by 27.4% yoy Bank Mandiri (BMRI) earned a consolidated net profit of IDR39.1 tn in 9M23 or grew 27.4% yoy. Total loan amounting IDR1,315.92 tn or 12.7% yoy as all segments recording positive growth. Total DPK grew 6.64% yoy, with CASA portion grew strong at 12.8% yoy. NIM 17 bps higher to 5.5% arriving within BMRI’s ‘23F forecast. Asset quality improvement remain intact with NPL falling by 75bps. (Source: CNN Indonesia). Comment: We like BMRI 9M23 earnings achievement. In all PATMI arrives above ours and consensus expectation at 82%/81% (5yr hist average of 76%). The bank continues enjoying loan repricing and successfully managed its CoF at acceptable level. We believe such condition will underpin BMRI’s NIM expansion to continue in the following quarters. Soft TPF is acceptable in our view and likely adequate to capture loan growth in 4Q23. We also expect liquidity to get higher on government better spending. Maintain BUY BMRI.