BMRI - Aims for 13%–15% credit growth

BMRI - Aims for 13%–15% credit growth Corporate Secretary of Bank Mandiri (BMRI), Teuku Ali Usman, said that the bank believes credit growth is likely to continue in the second semester, in line with domestic macroeconomic fundamental conditions. Bank Mandiri's consolidated credit growth guidance is in the range of 13%–15% this year. The bank will focus on prospective and resilient sectors, including plantations, the food and beverage industry, energy, and water. In addition, Bank Mandiri continues the credit growth strategy that has been implemented over the last few years by strengthening Bank Mandiri's core competence in the wholesale segment and increasing growth in the retail segment with an ecosystem-based value chain approach, as well as focusing on leading sectors in the Indonesian region. Until May 2024, Bank Mandiri has distributed credit on a bank-only basis, successfully growing above the market average with optimal credit quality maintained. Based on monthly reports, Bank Mandiri credit grew 19.50% to IDR1,152.53 tn as of May 2024, compared to IDR964.45 tn in the same period the previous year. This performance was supported by wholesale banking and retail banking credit distribution, each of which grew double digits. Until now, Bank Mandiri's credit has been driven by the wholesale segment, which is the company's core competence. (Source : Kontan) Comment : With the monthly bank-only loan growth consistently arriving above the industry average, we believe the range of loan growth targets sounds achievable. With the 5M24 solid loan numbers, we believe 1H24 strong loan growth will continue. Assuming the bank only reached the lowest range of loan growth guidance, we still believe it will overall help ‘24F earnings to continue to arrive better year-on-year. Maintain BUY BMRI with GGM-based TP of IDR8,100 (2.6x ’24F P/B).