FUNDAMENTAL STORY

HYPE OF CORPORATE ACTION IN

BANKING

1|EYE OF FUTURE Fundamental Story – 07 Feb 2024

 BMRI IJ
BANK MANDIRI TBK PT

COMPANY UPDATE
EXECUTIVE SUMMARY
07 Feb 2024
We believe that the revenue growth will bring BMRI IJ to
the next level. We foresee that the big fund is likely to
consider allocating their fund to buy this stock. We
recommend a BUY strategy for our outlook with a target
price at IDR 7,500.

OPTIMISTIC TARGET OF ORI025 DISTRIBUTION IN

2024
PT Bank Mandiri Tbk (BMRI IJ) has reported a 60% year-
on-year growth in the distribution of retail government
securities (SBN) sales, amounting to IDR 22.8 trillion in
2023. The bank, known for its golden ribbon logo, is set to
distribute the Retail Government Bonds (ORI) series
ORI025 with a target of IDR 3 trillion in the early part of
2024. In 2023, the company's support, particularly
through Livin' by Mandiri, contributed 60% to the total
distribution of retail SBNs at Bank Mandiri.

A STEP TOWARDS FINANCIAL INCLUSION KEY FINANCIAL

BMRI IJ strengthens its role in promoting financial
inclusion by encouraging the use of e-money for public Year to 31 Dec 2021 2022 2023
transactions. In collaboration with the Nusantara Capital Interest Income (IDRbn) 97,749 112,382 132,545
Region Authority (IKN), the bank introduces a special Net Income (IDRbn) 28,028 41,171 55,060
edition Nusantara e-money card at the Nusantara Fair
ROE (%) 14.6 19.7 23.2
2024. The initiative, led by Bank Mandiri's Vice President
Director Alexandra Askandar, supports the government's ROA (%) 1.7 2.2 2.6
cashless movement. Mandiri e-Money, with over 110 NPL (%) 2.7 1.9 1.2
million monthly transactions exceeding IDR 1.9 trillion, is Source: Bank Mandiri, IDX
widely accepted at more than 200,000 partner
merchants nationwide.

BMRI IJ AND BSI INTRODUCE SHARIAH PRICE CHART

INVESTMENT PRODUCTS
BMRI IJ, through Mandiri Sekuritas, has partnered with PT
Bank Syariah Indonesia (BSI) to launch Shariah-
compliant investment products. The offerings include
MOST Shariah from Mandiri Sekuritas and the Shariah
Online Customer Fund Account (RDN) from BSI.
Indonesia's significant potential in Shariah-compliant
stock investments, with around 137,000 investors in the
market as of November 2023. This collaboration provides
an opportunity for customers to easily and quickly open
an online Shariah RDN without a minimum deposit,
allowing for 100% online transactions within a day.
Source: Tradingview

2|EYE OF FUTURE Fundamental Story – 07 Feb 2024

 BUY
Updated

BMRI IJ REPORTS STRONG NET PROFIT IN 3Q 2023 TARGET PRICE IDR 7,500
BMRI IJ reports a consolidated net profit of IDR 39.1 trillion as POTENTIAL RETURN +7.91%
of September 2023, reflecting a robust 27.4% year-on-year LAST PRICE IDR 6,950
growth. Consolidated total assets reach IDR 2.007 trillion,
marking a 9.11% year-on-year growth. The positive trend is Financial Ratios
supported by the growth in credit disbursement, with Sector Banking
consolidated loans reaching IDR 1,315.92 trillion, a 12.71%
increase from the previous year. Positive growth in credit Bloomberg Ticker BMRI IJ
across all segments, particularly in the commercial segment Issued Share (IDR) 93.33 B
with a significant 18.55% year-on-year increase. Additionally,
Market Cap (IDR) 648.67 T
consolidated third-party funds (DPK) show positive growth,
Asset (IDR) 2,006.94 T
reaching IDR 1.452 trillion, a 6.64% year-on-year increase,
driven by growth in low-cost deposits (CASA), which Liability (IDR) 1,738.34 T
reached IDR 1.070 trillion, reflecting a 12.8% year-on-year Equity (IDR) 243.31 T
increase. Operating Profit (IDR) 51.51 T
Net Profit (IDR) 39.06 T
BMRI IJ PROJECTS STRONG CREDIT GROWTH FOR
2024 Earning
BMRI IJ projects a continued solid growth in banking credit Earnings Per Share (EPS)* 558.05
for 2024. The optimism is based on the report from Bank Revenue Per Share (RPS)* 1,789.50
Indonesia, indicating a 10.38% year-on-year growth in
Book Value Per Share (BVPS) 2,606.89
banking credit realization until December 2023, surpassing
the bank's projection of 9.00%. For 2024, BMRI IJ forecasts a
credit growth of 9.08%. Additionally, Bank Indonesia's Profitability Ratio
maintenance of loose macroprudential policies in 2024 is Dividend Payout Ratio (DPR) 47.43 %
expected to support this growth. In 2023, Bank Mandiri Operating Profit Margin (OPM) 41.12 %
recorded a 13.64% year-on-year increase in credit Net Profit Margin (NPM) 31.18 %
realization as of November, reaching a total disbursement
Return On Equity (ROE)* 21.41 %
value of IDR 1,046.05 trillion.
Return On Assets (ROA)* 2.60 %

FIXED-INCOME APPEAL AMIDST HIGH-INTEREST

Debt Ratio
RATES
Debt Equity Ratio (DER) 714.45 %
BMRI IJ reports a nearly 20% year-on-year growth in Asset
Under Management (AUM) for Mandiri Wealth Current Ratio (CRR) 112.97 %

Management, reaching approximately IDR 130 trillion by the Quick Ratio (QR) 112.97 %
end of November 2023. Growth in AUM to the appealing
yields of fixed-income assets amid a high-interest-rate Valuation
environment. Wealth Bank Mandiri's customers tend to Price Earnings Ratio (PER)* 12.45 x
allocate funds to bond products and money market mutual Price Book Value Ratio (PBV) 2.67 x
funds, especially as they approach the upcoming political
* Annualized
year, where customers prefer secure and less volatile
investment options.
Source: Bank Mandiri, IDX

3|EYE OF FUTURE Fundamental Story – 07 Feb 2024

BMRI IJ Financial & Credit Highlight

Positive Balance Sheet and P&L growth

Source: Bank Mandiri, IDX

Loan Growth Accelerated Across Most Segments

Source: Bank Mandiri, IDX

Positive Growth of Livin’ Users

Source: Bank Mandiri, IDX

4|EYE OF FUTURE Fundamental Story – 07 Feb 2024

BMRI IJ Financial Performance

Strong Consolidated Profit Growth

Liquidity Ratio

Source: Bank Mandiri, IDX

SUMMARY
Non-Interest Income Growth

Source: Bank Mandiri, IDX

Cost Efficiency

Source: Bank Mandiri, IDX

5|EYE OF FUTURE Fundamental Story – 07 Feb 2024

 SUMMARY

❖ BMRI IJ reports a consolidated net profit of IDR 39.1 trillion, marking a 27.4%
year-on-year growth in Q3 2023, supported by positive trends in total assets,
credit disbursement, and third-party funds.

❖ BMRI IJ anticipates a robust continuation in banking credit growth for 2024,

supported by the exceeding 2023 projection of a 10.38% year-on-year
increase and Bank Indonesia's sustained loose macroprudential policies, with
the bank recording a 13.64% year-on-year rise in credit realization in 2023.

❖ BMRI IJ reports a notable 60% year-on-year growth in retail government

securities (SBN) sales, reaching IDR 22.8 trillion in 2023, with plans to distribute
Retail Government Bonds (ORI) series ORI025 targeting IDR 3 trillion in early
2024, while highlighting the significant contribution of Livin' by Mandiri to the
total retail SBN distribution in 2023.

❖ BMRI IJ’s relative valuation of PBV is at a reasonable price and has a good
chance to reach the target price of IDR 7,500.

6|EYE OF FUTURE Fundamental Story – 07 Feb 2024

7|EYE OF FUTURE Fundamental Story – 07 Feb 2024