BMRI - Strong 1H23 results

Bank Mandiri (BMRI) booked net profit of IDR25,232 bn in 1H23 or grew 24.9% yoy on the back of strong net interest income which grow at 13.1%. Loan grew by 11.8% yoy, while TPF growth at 8.47% yoy remain driven by healthy CASA portion which improves 12.6% yoy. NIM arrives 19bps higher to 5.56, NPL improves by 79 bps to 1.64, while CoC saw another better figure by 23 bps to 1.19%. (Source: Company, KB Valbury Sekuritas). Comment : Overall BMRI showed a whole package of improvement both on its financial and metrics figure. 1H23 earnings beating both ours and street expectation. NIM and loan continue arrives within BMRI’s 2023 target, while CoC beating previous expectation and thus management increasing its target for CoC to 1.1%-1.3% from 1.3%-1.5% previously. Our ‘23F BMRI earnings growth at 12.5%, equal to IDR46,309 bn is around 98% below cons. at IDR47,195 bn.