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

Executive summary

• Achieved consolidated loan growth of 11% year-on-year as of September 2025, outpacing the industry, with strong deposit growth and robust asset quality (NPL ratio at 1.03%).

• Net profit declined 10.2% year-on-year to IDR 37.7 trillion, mainly due to higher operating expenses and provisions.

• Digital platforms Livin' and Kopra drove double-digit user and transaction growth, with Livin' reaching 35 million users and merchant app users at 3 million.

• Total consolidated assets reached Rp2,563.4 trillion as of 30 September 2025, up from Rp2,427.2 trillion at year-end 2024.

• Comprehensive income attributable to the parent entity was Rp41.3 trillion, down from Rp43.8 trillion year-over-year.

Financial highlights

• Net interest margin (NIM) was 4.89% in September 2025, within guidance, but down from 5.11% in 9M24.

• Net interest income grew 4.9% year-on-year to Rp78.3 trillion; non-interest income rose 7.97% year-on-year to Rp33.2 trillion.

• Operating expenses increased 25.3% year-on-year, raising the cost-to-income ratio to 44.6% in 9M25.

• CASA deposits rose 5.97% year-on-year to IDR 1,305 trillion; total deposits up 13% year-on-year to Rp1,884 trillion.

• Return on assets at 2.02% and return on equity at 18.4% as of September 2025.

Outlook and guidance

• Loan growth guidance for full-year 2025 maintained at 8–10% year-on-year, with expectations of stronger demand in Q4 and into 2026.

• NIM expected to remain stable within 4.8%-5% for 2025, with potential upside in 2026 as cost of funds further improves.

• OpEx growth to remain at 25% for 2025, normalizing to flat or slightly lower in 2026; CIR projected to normalize to 42%.

• Management notes the implementation of new accounting standards (SFAS 117 and SFAS 109) for insurance and financial instruments starting 1 January 2025.

• ROE targeted to improve toward 20% medium term.