BMRI - Forms syndicated credit with a limit of USD845 mn

BMRI - Forms syndicated credit with a limit of USD845 mn Bank Mandiri (BMRI) is consistent in encouraging the business sector through financing support with a syndication scheme. In total, Bank Mandiri as Mandated Lead Arranger (MLA) has formed syndicated credit with a limit of USD845 mn throughout the first quarter of 2024. Referring to the Bloomberg Table League report, as of the first quarter of 2024, Bank Mandiri was recorded as the mandated lead arranger for Indonesia borrower loans, with a market share of syndicated credit formation of 24.7% of the total syndicated credit volume in Indonesia of USD3.42 bn. SVP Corporate Banking 4 Group, Bank Mandiri, Erwanza Nirwan, explained that this support is part of the company's efforts to accelerate business and business growth, which has a positive impact on the domestic economy. (Source: Kontan) Comment : We might witness the BMRI total loan record being higher yoy amid the continuing uncertainty. Yet, we are aware that in the tight liquidity and high interest rate environment, profitability could face pressure. As such, we think NIM could remain within ‘24F guidance, backed by (1) stable, solid corporate loan growth and a better portion from the higher loan yield segment; (2) continuing solid deposit mix and being less aggressive on rate competition; and (3) loan yield repricing. Maintain BUY with a GGM-based TP of IDR8,100 (2.6x ’24F P/B)