Bank Mandiri Persero (BMRIIJ)

PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) is one of Indonesia’s largest banks and, based on total assets at end-2025, the largest listed state-owned commercial bank. The essence of its credit profile is not that of a fast-growing retail bank, but rather its franchise as a “national core bank” combining corporate and commercial banking, retail deposits, payments and digital infrastructure, and the government-related ecosystem. From a bond investor’s perspective, the bank should be viewed as an investment-grade bank credit in which standalone commercial bank credit quality overlaps with support expectations arising from government control and policy importance.

In conclusion, Bank Mandiri’s credit quality is stable. In 1Q2026, on the assumption of pro forma comparisons after the deconsolidation of Bank Syariah Indonesia (BSI), loan growth, deposit growth, cost discipline, and asset quality have not materially deteriorated. At end-March 2026, consolidated loans were IDR1,614tn, third-party deposits were IDR1,730tn, and total assets were IDR2,433tn, representing year-on-year growth of 16.2%, 21.0%, and 16.5%, respectively. Consolidated NIM was 4.70%, the NPL ratio was 1.02%, the Tier 1 ratio was 18.8%, and CAR was 19.7%, indicating a thick layer of fundamental strength as a bank credit.

That said, the assessment is not unconditionally bullish. First, the company’s 2026 guidance indicates loan growth of 7-9%, adjusted NIM of 4.5-4.7%, and credit cost of 0.6-0.8%, with NIM guided slightly lower than the previous 4.6-4.8% range. This indicates that liquidity, deposit competition, and downward pressure on loan yields remain the main issues in the Indonesian banking system. Second, from 2025 to 2026, the ownership structure has changed to one involving Danantara Asset Management and BP BUMN. While government control is maintained, investors should not conflate “government ownership” with an explicit guarantee on individual bonds.