BMRI - 9M25 earnings inline; robust 3Q25

KBVS Update 
Tuesday, 28 Oct 2025    

BMRI: 9M25 earnings inline; robust 3Q25
(Maintain BUY; GGM TP: IDR5,660)

* 9M25 earnings result highlights BMRI's resilience despite sector pressures, marked by strong top-line growth and a robust 3Q25 performance, even as it navigates challenges in operating costs and margin compression. In all, 9M25 earnings were in-line with our and cons. expectations (run-rate of 73.7%/74.4%).

* Loan expanded of 11.0% yoy, beating BMRI’s ‘25F guidance, sector growth in Sept25 and our forecast. Total TPF grew 13.0% yoy, with healthy CASA growth. NIM -22bps softer, though within BMRI’s 25F and our estimate. The gross NPL is well-controlled and the standout was the CoC, which improved significantly to 0.73% (9M24: 0.87%) and materially beat both BMRI's estimation (0.8%-1.0%) and our ‘25F of 1.0%

* Looking ahead to 2026, key for ‘26F earnings performance are: (1) stronger loan volume growth to offset softer yields, (2) materialized transmission of benchmark rate cuts to support NIMs and (3) anticipated normalization of the CIR following the one-time adjustments this year.

* Maintain BUY with GGM-based TP of IDR5,660 (1.7 x ‘25F P/B), while currently trading at 1.3x ‘25F P/B or below its -1SD hist. mean.

Regards,
Akhmad Nurcahyadi - KBVS Research