PT Bank Mandiri (Persero) (BMRI) Q2 2025 earnings summary

Executive summary

• Achieved 11% year-on-year loan growth in H1 2025, outpacing the industry average, with total assets up 11.4% to Rp2,514.7 trillion.

• Net profit declined 7.89% year-on-year to Rp24.5 trillion due to higher OpEx from one-off post-audit adjustments and provisioning.

• Asset quality remained strong with NPL at 1.08%-1.24% and LAR at 6.92%.

• Digital platforms Livin' and Kopra drove strong growth in transaction volumes, fee income, and low-cost funding, with Livin' users reaching 33 million.

• ESG rating upgraded to AA by MSCI, reflecting significant progress in sustainability initiatives.

Financial highlights

• Revenue grew 5.43% year-on-year; net interest income up 6.7% to Rp52.4 trillion, non-interest income up 7.8% to Rp20.9 trillion.

• Operating expenses rose 25.2% year-on-year, mainly due to a one-off post-audit adjustment (10-12% of total OpEx), pushing cost-to-income ratio to 44.5%.

• NIM at 4.92% in H1 2025, with guidance revised to 4.8%-5% for the year.

• ROA at 1.98%, ROE at 18.1% in H1 2025.

• CASA ratio remained strong at 74.0% as of June 2025.

Outlook and guidance

• Loan growth guidance revised to 8%-10% for 2025, reflecting softer demand.

• NIM guidance set at 4.8%-5%, incorporating expected BI rate cuts.

• Cost of credit guidance lowered to 80-100 bps for 2025.

• OpEx growth for 2025 expected at 25%-26% year-on-year, normalizing to low single digits in 2026.

• Expect improved cost of funds and liquidity in 2H25.