BMRI - Deposits grew 13.6% yoy in Nov '22

Bank Mandiri's (BMRI) third party fund (TPF) grew by 13.6% yoy to IDR1,122 tn in Nov '22. Of the total fund, CASA reached 77%, thanks to SD growth at 15% yoy. According to the bank, low cost fund remains one of the focus and amidst the rising policy rates BMRI will eyeing and maintain CASA at above 70%. (Source : Investor Daily). Comment: Continuing TPF growth especially if triggered from low cost fund will benefit the bank. Aside from improving TPF amid solid ample liquidity, BMRI’s increasing CoF could be slower than its asset yield and thus will maintain NIM and NII growth. With improving NIM combined with expectation on stable provisions as it has been front loaded, BMRI could record another solid earnings growth in 2023. Maintain BUY BMRI with TP IDR11,250/share (2.1x '23F PBV).