Menu
Net profit slightly lower QoQ; NIM fell under pressure. In 1Q25, BMRI posted consolidated net profit of IDR 13.2 tn (-4.1% QoQ, +3.9% YoY), in line with our forecast (22.7% of FY25F) and consensus (23.0%). PPOP grew 3.8% YoY, supported by strong non-interest income growth (+17.3% YoY), although NIM declined to 4.8% (4Q24: 5.3%), down 27bps YoY, due to higher funding costs and weaker loan yields. Recurring fee income rose 12.8% YoY, driven by Livin’ fees (+19.8% YoY) and solid subsidiary contributions (+24.5% YoY). Assets quality improved, with LAR ratio declining to 7.2% (-122bps YoY) across wholesale and retail segments, while CoC remained healthy at 0.88%, supported by ample provisioning. However, bank-only CIR increased to 38.2%, mainly due to higher personnel expenses (+25.0% YoY) and G&A costs (+10.6% YoY).
Prioritizing safe sectors and ecosystem-driven value chain growth. BMRI remains focused on expanding in low-risk sectors and ecosystem-based value chains, while maintaining its LDR around 90% to preserve healthy liquidity. The bank also aims to strengthen transactional CASA through value chain initiatives, which are expected to reduce CoF to 2.3% from 2.6% in FY24 and support NIM improvement in 2H25 to 5.2% from 4.8% in 1Q25.
2025F guidance: Moderate loan growth of 10–12%, CoC at 1.0–1.2%. BMRI has reaffirmed its 2025F guidance, expecting loan growth to normalize to 10–12% (vs. 19.5% in FY24), reflecting caution amid potential economic headwinds. Despite 1Q25 NIM compression, the bank anticipates margin recovery in 2H25, driven by lower CoF and room to increase loan yields, particularly in commercial and consumer segments. BMRI projects its 2025F NIM to improve modestly to 5.0–5.2%. Meanwhile, CoC, which stood at 88bps in 1Q25, is expected to rise slightly in the upcoming quarters, in line with the full-year target range of 100–120bps.
Retain BUY with TP of IDR 5,700 (1.7x PBV) on healthy assets quality. We maintain our BUY recommendation on BMRI with 12-month target price of IDR 5,700/share, implying 2025F PBV of 1.7x and 15.4% upside potential. While liquidity outlook remains uncertain, we believe BMRI can improve margins in 2H25 through optimization of its product mix toward higher-yielding assets. The bank’s strong assets quality further supports its financial outlook. Key downside risks include weaker-than-expected economic recovery, lower NIM and loan growth, as well as rising credit costs.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
