BMRI - KTA Analyst Meeting FY23 results

BMRI - KTA Analyst Meeting FY23 results Bank Mandiri (BMRI) FY23 earnings grew by 33.7% yoy. On quarterly basis, PATMI grew stronger by 15.6% qoq, 52.1% yoy. Loan grew by 16.3% yoy (above industry). TPF growth at 5.78% yoy, 8.63% qoq was as a result of solid CASA growth at 7.05% yoy. 9.47% qoq. ’23 NIM (5.5%) came in within ‘23F guidance. NPL recorded at 1.19% and 73bps yoy better, while CoC booked at 0.85% and 59bps healthier vs 1.44% a year earlier. (Source: Company) Comment: ’23 solid earnings were mainly driven by solid growth in PPOP (17.3% yoy) and a sharp drop in provision (37.1% yoy). In all ’23 earnings were way above ours and street forecast at a run rate of 110%/114%. Strong loan growth supported by corporate segment (18.3% yoy) and commercial segment (21.2% yoy) and we believe the 2 segments will continue underpin ‘24F loan growth performance. The ‘24F loan growth guidance within the range of 13-15% yoy likely to be achieved backed by higher yield segments. The bank expected NIM and CoC to hover within 5.3-5.5% and 1.0-1.2%. At this stage, we continue to like BMRI. Our call on the stock has given 1YR return of 33.7% and at today price our TP (IDR6,650) has been achieved. We will revisit our model to accommodate BMRI’s ’23 breathtaking result.