PT Bank Mandiri (Persero) (BMRI) Q4 2023 earnings summary

Executive summary

• FY23 PATMI rose 33.7% YoY to Rp55.1Tn; loans grew 16.3% and ROE reached 23.2%.

• Growth was supported by higher PPOP, lower provisions, improving asset quality and digital-channel activity.

Financial highlights

• FY23 total operating income increased 10.4% YoY to Rp138.7Tn; net interest income rose 9.08% to Rp95.9Tn and non-interest income gained 15.5% to Rp40.6Tn.

• PPOP grew 17.3% to Rp84.8Tn; provision expense fell 37.1% to Rp10.1Tn, while operating expenses increased 1.14% to Rp53.9Tn.

• 4Q23 PATMI reached Rp16.0Tn, up 52.1% YoY and 15.6% QoQ; non-interest income climbed 26.6% YoY to Rp13.3Tn.

• FY23 total assets rose 9.12% YoY to Rp2,174Tn; deposits increased 5.78% to Rp1,577Tn and CASA deposits grew 7.05% to Rp1,172Tn.

Outlook and guidance

• FY24 consolidated loan growth guidance is 13–15%, with NIM of 5.3–5.5% and credit cost of 1.0–1.2%.

• Loan growth priorities include value-chain lending and higher-yield Commercial, Micro, SME and Consumer segments.

• NIM support factors include ample LDR and CASA prioritization; loan yields are expected to remain broadly flattish.

• Credit costs are expected to normalize with provision reversals, while maintaining a stable coverage ratio.