Bank Mandiri (BMRI IJ) Indonesia

Financials

Tabbush Report

BMRI's image needs updating. It is expanding its loans strongly, despite its size. Its credit metrics are improving dramatically. Daniel Tabbush sees this with some of the best NPL decline in the country and also now with strong credit cost reversals. With much lower Loss NPLs and far higher NPL coverage than in the past, benign credit costs can continue. NIM may be lower but this can mislead where the credit focus is on higher quality loans. Operating costs are improving substantially, while the bank’s funding structure is also improving. ROA expansion continues, with BMRI seeing higher returns than in any period of the past 10-15 years. Daniel believes this can continue or improve further.

- 05 April, 2024

Bank Mandiri (BMRI IJ) Indonesia

Financials

Galliano's Financials Research

Victor Galliano reviews 6 large and mid-cap Indonesian commercial banks on the back of recently announced 4Q23 results to identify those that are attractive value, have good earnings growth prospects and have the potential to deliver higher returns. BMRI is his top pick for its quality attributes, its premium and growing pre- and post-provision returns; it also provides a better valuations to returns mix than Bank Central Asia. Bank Negara is his value pick with its low PE multiples, its attractive PEG ratio, whilst also improving pre- and post-provision returns with cost of risk well controlled.

- 23 February, 2024

Big cap GEM Bank investment recommendations for 2024

Financials

Galliano's Financials Research

Victor Galliano favours four longs and one short as his conviction calls for the year ahead. 1) Bank Mandiri (Indonesia) continues to generate improving returns and has strong capital ratios, credit quality and liquidity metrics. 2) KB Financial (South Korea) is a deep value pick. 3) China Merchants Bank is a contrarian pick, which looks well positioned to confront concerns re. Chinese NPLs and also on very attractive valuations. 4) Banco do Brasil screens well re. valuations and returns; its growth potential also looks particularly appealing. 5) Victor’s key sell is Kotak Mahindra Bank (India) as it is richly valued, exposed to low prospective earnings growth and has low credit quality coverage.

- 12 January, 2024

Bank Mandiri (BMRI IJ) Indonesia

Financials

Smart Insider

Sigit Prastowo (Finance Director since 2020) purchased ~730k shares on Aug 15th at IDR 5,852, increasing his holdings by +14% to 5.9m shares. This is Prastowo's sixth purchase, his largest and the highest price he has paid. His first purchase was in Mar 2022 at IDR 3,938 and he has steadily added to his holdings since. Smart Insider ranked this stock +N on Aug 10th based on purchases from Agus Dwi Handaya (Compliance & Human Resource Director) and Tim Utama (IT Director). There are now three key operating officers buying shares while the stock is near an all-time high. Smart Insider upgrades the stock further, from +N to +1 (highest ranking).

- 18 August, 2023

Bank Mandiri (BMRI IJ) Indonesia

Financials

Galliano's Financials Research

Victor Galliano’s top pick following a review of several Indonesian commercial banks - Mandiri is well geared (with its exposure to MSME credit) to continued GDP recovery; it ranks well re. pre-provision profitability, and post-provision profitability should improve going forward; its return prospects are helped by healthy NPL coverage for its delinquency ratio which implies further potential for lower prospective cost of risk. Victor also likes Bank Rakyat and sees Bank Permata as a potential “turn around” stock, especially if management can improve credit quality and keep lowering its cost of risk to boost returns.

- 10 June, 2022