PT Bank Mandiri (Persero) (BMRI) Q3 2025 earnings summary

Executive summary

• Achieved 11% year-on-year consolidated loan growth as of September 2025, outpacing the industry, driven by strong wholesale segment expansion and prudent retail lending focus, with robust asset quality and resilient funding metrics.

• Net profit for 9M 2025 declined 10.2% year-on-year to IDR 37.7 trillion, mainly due to higher operating expenses and provisions, despite revenue and non-interest income growth.

• Asset quality remained robust, with NPL ratio at 1.03%–1.19% (well below industry average), and NPL coverage at 243% consolidated.

• Digital platforms Livin’ and Kopra continued to deliver double-digit user and transaction growth, supporting fee-based income, with Livin' users reaching 35 million and merchant app users at 3 million.

• Significant progress in ESG, achieving lowest risk rating among large Indonesian banks, strong green portfolio growth, and improved ESG ratings (MSCI AA, Sustainalytics 9.5 Negligible Risk).

Financial highlights

• Net interest margin (NIM) stable to slightly compressed at 4.89% as of September 2025, within guidance range.

• Cost of funds improved to 2.40% in Q3, with further declines expected as deposit mix optimizes.

• Operating expenses grew 25.3% year-on-year, but efficiency initiatives kept cost-to-income ratio flat at 44.6%.

• Return on assets at 2.02% and return on equity at 18.4% for 9M 2025.

• CASA deposits rose 5.97% year-on-year to IDR 1,305 trillion, though CASA ratio declined to 69.3% from 73.8% in 9M24.

Outlook and guidance

• Loan growth guidance for full-year 2025 maintained at 8–10% year-on-year, with expectations of stronger demand in Q4.

• NIM expected to remain stable within 4.8%–5% for 2025 and potentially similar in 2026.

• OpEx growth projected to normalize to flat or slightly lower in 2026, with CIR targeted at 42%.

• ROE expected to improve toward 20% medium-term target as profitability recovers.

• Continued focus on digital monetization, ecosystem-driven lending, and optimizing loan portfolio for future growth.