Bank Mandiri (BMRI) posted a net profit of IDR 4.5 trillion in May 2025, marking a slight decrease of 2% YoY but a 26% MoM improvement. Over the first five months of 2025, the bank’s cumulative net profit reached IDR 19.7 trillion, remaining flat YoY, aligning with analyst expectations for a nearly flat annual net profit growth.

Performance Trends Post-Idul Fitri

Bank Mandiri’s performance in May 2025 shows resilience following the Lebaran holiday, with a steady trend similar to Q1 2025. The overall trajectory indicates that operations in Q2 2025 are unlikely to deviate much from the previous quarter, except for notable variations in June 2025’s results.

Revenue Drivers: Non-Interest Income Takes the Lead

In May 2025, Non-Interest Income (Non-II) grew +6% YoY, contributing to a +13% increase over 5M25. Meanwhile, Net Interest Income (NII) experienced a marginal decline of -1% YoY in May, with a +4% growth across Jan–May 2025. The lower NII performance is mainly due to significant rises in interest expenses amid tight liquidity conditions. This is reflected in the Net Interest Margin (NIM), which stayed at 4.39% in May 2025, with a year-to-date level of 4.45%, slightly below management’s guidance of 4.5% for 2025.

Interest Margin and Growth Comparison

• May 2025 NIM: 4.39% (YTD: 4.45%)
• Compared to 5M 2024: 4.86%; Q1 2025: 4.46%
• Relatively lower than 2025 guidance

Overall, the annualized growth rate of Non-II and NII during 5M25 remains similar to Q1 2025, which saw YoY growth of +15% and +6% respectively. This suggests that bank’s revenue streams are maintaining their momentum despite margin pressures.

Operating Expenses and Profitability

Operating expenses increased +6% YoY in May 2025, and +22% over 5M25. The rise in costs offset income growth, resulting in a flat Pre-Provision Operating Profit (PPOP) of approximately -1% YoY for May and the first five months of 2025. Similarly, provisions expenses rose +7% YoY in May but decreased -6% YoY across 5M25, thanks to lower Cost of Credit (CoC) at 0.7% over 5M25 (vs. 0.87% in 5M24), which remains below management’s guidance.

Conclusion: Stable Profit with Attention to Margin Management

Bank Mandiri’s May 2025 financials reflect a stable overall performance, balancing modest revenue growth with controlled expenses and provisions. While margins face pressure, the bank’s diversified income sources and cost controls underpin its resilience amid evolving market conditions.

For more detailed insights, visit Bank Mandiri’s official site or follow their latest reports for updates.