BMRI - CoC will be maintain at 1.3%-1.5%

Bank Mandiri (BMRI) will maintain CoC within the range of 1.3%-1.5% this year. To reached the target, the bank will continuously implementing precautionary principles throughout the loan channeling process. BMRI guiding NIM at 5.3%-5.6% with loan growth at 10%-12% and NPL within the range of 1.7%-1.8%. (Source : Kontan). Comment: We believe 2023 will be another od year for BMRI. Manageable asset quality, solid loan growth and our expectation on the continuing NIM improvement will overall underpinned BMRI’s earnings growth this year. Maintain BUY, with GGM TP of IDR11,250 (2.3x 2023F P/B) while it is currently trading at 2.0x ‘23F P/B, or below +1SD of 10-year historical mean.