PT Bank Mandiri (Persero) (BMRI) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached IDR 55.8 trillion, up 1.3% year-on-year, driven by 19.5% loan growth led by wholesale and corporate segments, and robust digital fee income, despite higher funding costs.

• Asset quality improved with NPL ratio at 1.12% and loan-at-risk at 6.8%, supported by prudent risk management and strong coverage ratios.

• Digital transformation accelerated, with Livin' and Kopra platforms driving significant growth in transaction volumes, customer acquisition, and fee-based income.

• ESG initiatives advanced, with improved MSCI ESG rating to BBB, sustainability risk rating to Low, and sustainable portfolio reaching IDR 293 trillion (+10.8% YoY).

• Subsidiaries contributed 15.2% loan growth and 30.2% non-interest income growth, supporting overall revenue.

Financial highlights

• Consolidated net profit reached IDR 55.8 trillion, up 1.3% year-on-year; net interest income rose to Rp101.8 trillion (+6.1% YoY).

• Pre-provision operating profit (PPOP) increased 3.8% year-on-year to IDR 88 trillion.

• Total assets grew to Rp2,427.2 trillion as of December 31, 2024, from Rp2,174.2 trillion in 2023.

• CASA deposits grew 8.49% year-on-year to IDR 1,271 trillion; CASA ratio reached 74.8%.

• Non-interest income rose 4.12% year-on-year to IDR 42.3 trillion, driven by digital and subsidiary fees.

Outlook and guidance

• 2025 loan growth guidance set at 10–12%, with deposit growth expected to match or exceed loan growth.

• NIM guided at 5.0–5.2%, reflecting a cautious stance amid tight deposit environment.

• Credit cost expected to normalize to 1–1.2% as provision reversals subside.

• Focus on expanding transactional CASA, optimizing funding costs, and maintaining ROE above 20%.

• Management expects continued growth in core banking segments and ongoing focus on prudent risk management.