PT Bank Mandiri (Persero) (BMRI) Q2 2024 earnings summary

Executive summary

• Net profit for 1H24 reached Rp 29.27T, up from Rp 27.70T in 1H23, with strong loan growth and digital transformation driving performance.

• Total assets reached Rp 2,257.8T as of June 2024, up 15.0% YoY and 3.8% from year-end 2023.

• Net interest income rose to Rp 49.1T, supported by digital initiatives and Livin' app performance.

• Cost of credit improved to 0.98% in 1H24, with loans-at-risk ratio declining to 7.7%.

• The group maintained strong capital adequacy and liquidity, with a consolidated CAR of 20.14%.

Financial highlights

• Net interest and sharia income for H1 2024 was Rp 49.08T; non-interest income increased 5.7% YoY, though cash recoveries declined 26.7% YoY.

• Loans and sharia receivables (gross) grew to Rp 1,532.4T as of June 2024.

• CASA deposits rose 17.9% YoY to Rp 1,238.5T; CASA ratio improved to 75.0%.

• Pre-provision operating profit (PPOP) grew 3.5% YoY to Rp 43.5T; operating expenses increased 6.2% YoY.

• Dividend payout ratio for 2023 was 60%, with Rp 353.96 per share distributed in March 2024.

Outlook and guidance

• 2024 loan growth guidance raised to 16–18%, NIM expected at 5.0–5.3%, and credit cost at 1.0–1.2%.

• Management expects continued growth in loans and deposits, focusing on asset quality and capital adequacy.

• The group is prepared for market volatility and regulatory changes, including interest rate benchmark reforms.