BMRI - FY24 net profit reached IDR55.78 tn

BMRI - FY24 net profit reached IDR55.78 tn Bank Mandiri (BMRI), Indonesia's leading state-owned bank, has reported a consolidated net profit attributable to owners of IDR55.78 tn for the full year 2024, a modest 1.31% yoy increase from the IDR55.06 tn achieved in 2023. This positive performance was driven by a 6.12% yoy surge in net interest and sharia income, reaching IDR101.75 tn. Concurrently, Bank Mandiri demonstrated strong credit growth, with loan disbursements expanding by 19.36% yoy to IDR1,623.21 tn as of December 2024. The bank maintained a healthy asset quality profile, recording a gross non-performing loan ratio of 0.97% and a net NPL ratio of 0.33% at the end of the reporting period. On the funding side, Bank Mandiri successfully garnered IDR1,698.89 tn in third-party funds, representing a 7.74% yoy increase from the previous year's IDR1,576.94 tn. (Source : Cnbc Indonesia) Comment : In all, we like BMRI strong interest income growth of 14.1% yoy, though escalating funding costs constrained net interest income growth to 6.12% yoy. Increased provisions (17.5% yoy) dampened earnings growth, resulting in a modest PATMI of 1.31% yoy increase to IDR55.78 tn and came in at 97%/97.3% of consensus and our ‘24F earnings for BMRI. BMRI’s robust 19.5% yoy loan growth, exceeding both industry trends and our 13.7% yoy projection, driven by strong corporate (26.7% yoy) and commercial (23% yoy) segments, while TPF 7.73% yoy, outpacing peers, with favorable CASA growth (8.49% yoy) exceeding TD growth (5.54% yoy). NIM demonstrated consistent improvement throughout 2024, reaching 5.15% in FY24, within the 5.0-5.3% guidance (KBVS: 5.1%). BMRI projects 10-12% yoy loan growth in FY25, with NIM and CoC expected to be within 5.0-5.2% and 1.0-1.2%, respectively. Maintain BUY with GGM-based TP IDR8,180 (2.3x '25F P/B).