BMRI - 4Q25 earnings spike; FY25 earnings came above

KBVS Update
Friday, 6 February 2026

BMRI: 4Q25 earnings spike; FY25 earnings came above
(Maintain BUY; GGM TP: IDR5,660)

* BMRI 4Q25 earnings spike (+34.9% yoy, +39.8% qoq) on the back of a sharp drop in operating expenses by -5.84% yoy (3Q25: +25.4% yoy) and provisions tanking (-63.8% yoy, -72.8% qoq) has made FY25 PATMI (+0.92% yoy) significantly surpass both our and cons. ‘25F by 109.9% and 109.7%, respectively.

* ‘26F management guidance: (1) loan growth (7-9% ypy), (2) NIM: 4.6-4.8%, and (3) CoC (60-80 bps).

* We anticipate 2 main growth drivers in ‘26F: (1) opex normalization and (2) coc to remain at a low level. Crucial challenges are (1) loan yield compression could jeopardize NIM with the absence of healthy loan demand and (2) prolonged strong time deposit growth.

* More detail will be updated on BMRI FY25 earnings results report. Maintain BUY with GGM-based TP IDR5,660 (1.6x '26F P/B), while currently trading at its -1SD of 1.4x ‘26F P/B.

Sincerely,
Akhmad Nurcahyadi - KBVS Research