BMRI - Flat 5M25 earnings, yet strong in May25; in line

KBVS Update
Monday, 30 June 2025

BMRI - Flat 5M25 earnings, yet strong in May25; in line
(Maintain BUY - GGM TP IDR6,240)

* While May25's standalone PATMI showed a strong 29.9% yoy surge, the overall ytd growth remained relatively flat at 0.1% yoy. Yet, the 5M25 earnings run rate is still in line at 35.0%/32.2% (cons) vs. 35.5%.

* ⁠Robust loan growth surpassing both industry averages and management guidance, with a 13.2% yoy increase (KBVS ‘25F: 10.4% yoy). Deposit growth (8.5% yoy) outperforming the industry, yet it has been driven by high funding costs.

* ⁠NIM under pressure as funding costs bite (4.5% in 5M25). A sustained improvement in deposit mix, will be critical for a more favorable NIM trajectory in the coming months. We anticipate a closer bonding between loan and CASA growth in the near term to mitigate further NIM erosion.

* ⁠We believe stable low credit costs and manageable CIR, fueled by solid non-II growth, to act as major catalysts, supporting overall growth. Maintain BUY GGM-based TP IDR 6,240 (1.9x ‘25F P/B), while currently at 1.5x ‘25F P/B, slightly above its -1SD of 1.4x.

Sincerely,
Akhmad Nurcahyadi - KBVS Research