The Quarter Where Growth Actually Reversed
The Q1 2025 post closed on cautious optimism: net income had grown 2.89% YoY, "a real recovery from Q4 2024's ~13.9% standalone decline." Bank Mandiri's unaudited consolidated financial statements for the period ended June 30, 2025 end that optimism fast. Half-year consolidated net income attributable to owners fell to Rp24,455,082 million, down 7.89% YoY from H1 2024's Rp26,550,640 million - and because Q1 2025 alone was still up 3.90%, the arithmetic means Q2 2025 standalone profit collapsed: isolating the quarter (H1 minus Q1) puts Q2 2025 net income at roughly Rp11.26 trillion against Q2 2024's roughly Rp13.85 trillion, a decline of approximately 18.7% YoY - the sharpest single-quarter profit drop this backfill has tracked, sharper than Q4 2024's ~13.9% standalone fall.
Operating income tells the same story from a different angle: consolidated Profit from Operations fell 8.64% YoY for H1 (Rp33,442,833 million vs Rp36,605,750 million), even though Q1 2025 alone had operating income up 2.9% YoY. Back out Q1, and Q2 2025 standalone operating income fell roughly 19.3% YoY (~Rp15.33 trillion vs ~Rp19.00 trillion) - a decline concentrated entirely in the second quarter, not a slow bleed across the half. Net interest, sharia and insurance income - this bank's closest equivalent to "revenue" - still grew a healthy 4.51% YoY to Rp52,444,656 million, which makes the profit story a cost and provisioning problem, not a top-line one: Individual (bank-only) Salaries and employee benefits expense rose from Rp8,018,059 million to Rp8,812,130 million (+9.9%) and Promotion expenses jumped from Rp328,224 million to Rp2,110,444 million (up more than 6x) even as impairment charges on financial assets actually fell YoY (Individual: Rp3,279,979 million vs Rp4,737,262 million) - so this isn't a credit-cost story either. A bank whose funding side is growing revenue at a healthy clip but still posting its worst quarterly profit decline in this backfill is a cost-discipline problem, not a demand problem.
The Prescription
Mandiri's real task this quarter is to explain, in its own disclosures, where the cost growth that erased a 4.5%-growing revenue line actually landed - not just to let the headline decline speak for itself. The operational move: publish (or have the regulator require) the same segment-level income statement this backfill has now seen for two straight quarters (see the Q1 2025 post and the FY2024 post), because without it there is no way to tell whether this quarter's cost surge (salaries +9.9%, promotion expense up more than 6x) hit the same lending segments the last two disclosed segment notes showed struggling, or whether it's concentrated somewhere new. A bank that discloses a granular segment note in two consecutive periods and then drops it in the third makes it impossible for a reader - or, more importantly, its own board - to tell whether a sharp profit swing is a genuine operating problem or a comparative-basis artifact like the one flagged in the prior two posts.
What it should stop doing: letting the newspaper-format regulatory publication stand in as the only public disclosure for a quarter this consequential. The format (see Beyond the Usual) is legally sufficient, but a ~19% quarterly profit decline is exactly the kind of result that warrants the fuller disclosure - a results presentation, an earnings call, a segment note - that the bank provided for Q1 2025 and skipped this quarter.
Key Financial Metrics
H1 2025 vs H1 2024 (P&L, consolidated), and June 30, 2025 vs December 31, 2024 / June 30, 2024 (balance sheet, consolidated)
FX: IDR 16,235.00 = USD 1 (June 30, 2025 close, per the bank's own filed exchange-rate disclosure); IDR 16,375.00 = USD 1 (June 30, 2024 close, per the same disclosure, consistent with the H1 2024 post); IDR 16,095.00 = USD 1 (December 31, 2024 close, per the FY2024 post).
| Metric | H1 2025 (IDR) | H1 2025 (USD) | H1 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net interest, sharia & insurance income ("Net Revenue" equivalent) | Rp52,444,656M | ~$3.23B | Rp50,182,541M | ✅ +4.5% |
| Operating Income (Profit from Operations) | Rp33,442,833M | ~$2.06B | Rp36,605,750M | ⚠️ -8.6% |
| Net Income (attributable to owners) | Rp24,455,082M | ~$1.51B | Rp26,550,640M | ⚠️ -7.9% |
| EPS (basic, half-year) | Rp262.02 | ~$0.016 | Rp284.47 | ⚠️ -7.9% |
Operating cash flow for H1 2025 was Rp97,316,260M (~$5.99B), against fixed- and intangible-asset capex of Rp2,483,284M - a sharp reversal from H1 2024's negative operating cash flow, driven by bank-only deposits growing faster than loans this half rather than the seasonal outflow the H1 2024 post and Q1 2024 post tracked. As with any bank, this swing reflects balance-sheet growth, not a free-cash-flow figure. Total cash and cash equivalents at period-end is Rp273,050,048M (~$16.82B), up from Rp206,093,448M a year earlier.
| Balance sheet metric | Jun 30, 2025 (IDR) | Jun 30, 2025 (USD) | Dec 31, 2024 (IDR) | Jun 30, 2024 (IDR) | YoY |
|---|---|---|---|---|---|
| Total Assets | Rp2,514,684,369M | ~$154.92B | Rp2,427,223,262M | Rp2,257,801,434M | ✅ +11.4% |
| Loans (gross, Kredit) | Rp1,655,987,678M | ~$102.02B | Rp1,623,216,612M | Rp1,487,438,239M | ⚠️ +11.3% |
| Total Deposits (Giro + Tabungan + Deposito, incl. sharia) | Rp1,828,481,121M | ~$112.65B | Rp1,698,896,916M | Rp1,651,024,724M | ⚠️ +10.8% |
| Total Equity (attributable to owners) | Rp266,828,687M | ~$16.43B | Rp283,796,429M | Rp254,353,493M | ✅ +4.9% |
Equity's -6.0% sequential drop since December is the same seasonal dividend pattern this backfill has tracked every year since Q1 2023 - the full-year dividend, Rp43,510,539 million (identical to the figure the Q1 2025 post already reported, since the entire payout was made in Q1 and nothing further was paid in Q2). Equity still grew 4.9% YoY despite it, though at a slower pace than Q1 2025's 5.6% YoY equity growth, tracking this quarter's weaker retained-earnings accumulation.
H1 2025 net income fell 7.89% YoY - and because Q1 alone was still up 3.90%, that means Q2 2025 standalone profit fell roughly 18.7% YoY, the sharpest quarterly decline this backfill has tracked, on a revenue line that actually grew 4.5%. See The Quarter Where Growth Actually Reversed above.
Key Operational Metrics
All ratios below are bank-only (Individual), as filed in the bank's own Statement of Financial Ratios appendix - back in this quarter's report after being absent from Q1 2025 (see the [Q1 2025 post](/analysis/bmri/2025-03/) and [Beyond the Usual](#beyond-the-usual)). No results presentation was filed this quarter, so consolidated-basis NIM/NPL/ROA/ROE/CIR (sourced from the deck in Q1 2025) aren't available this time - the reverse of Q1's gap.
- Loan-to-Deposit Ratio (LDR)» - bank-only, filed: 90.22%, essentially flat versus a year earlier (90.48%) and down from the 94.18% the Q1 2025 post computed for March 2025 (that quarter's own filed ratio appendix was missing, see Beyond the Usual) - liquidity pressure continued easing rather than climbing back toward last year's record highs.
- CAR (capital adequacy)» - bank-only (Individual): 18.35%, down from 19.35% a year earlier but up 1.06 percentage points from Q1 2025's 17.29% - a real, if partial, recovery from the sharpest single-quarter CAR drop this backfill tracked. Consolidated CAR: 19.45%, up from Q1 2025's 18.50% and down from 20.14% a year earlier.
- ROA» - after tax - bank-only: 2.89%, down from 3.58% a year earlier.
- ROE» - after tax - bank-only: 21.06%, down from 24.39% a year earlier.
- NIM» - bank-only: 4.61%, down from 4.92% a year earlier.
- NPL» ratio - gross - bank-only: 1.08%, up from 1.01% a year earlier. Net NPL: 0.39%, up from 0.35%.
- Cost-to-Income Ratio» (CIR) - bank-only: 43.40%, notably worse than 32.43% a year earlier - the sharpest CIR deterioration this backfill has tracked, and the clearest single ratio confirming this quarter's cost story (see above).
- Net Open Position (NOP)» - overall: bank-only 1.44%, up from 0.68% a year earlier but down sharply from Q1 2025's 3.67% - the currency-risk spike the Q1 2025 post flagged as worth watching eased back most of the way this quarter (see Beyond the Usual).
- Not available this quarter: a segment-level income statement (present in the Q1 2025 and FY2024 reports, absent here - see Beyond the Usual); a results presentation or earnings call transcript; consolidated-basis NIM/NPL/ROA/ROE/CIR.
Beyond the Usual
No segment note this quarter breaks a two-period streak, right when one would matter most
The FY2024 post and the Q1 2025 post both found - and the latter confirmed as a recurring pattern, not a one-off - that Mandiri's segment-level income statement showed every core lending segment's profit falling YoY while a narrowing Head Office loss (an apparent internal cost-reallocation) kept the consolidated headline positive. This quarter's published financial statements are the abridged, newspaper-format regulatory disclosure (balance sheet, P&L, capital and asset-quality ratios, cash flow statement) rather than the fuller interim statements with notes to the financial statements that carried the segment note in the two prior periods - so this quarter's numbers cannot confirm or refute whether the same cost-reallocation pattern held for a third straight period, at precisely the quarter where consolidated profit itself turned negative YoY for the first time in this backfill. That absence is itself the finding: a reader cannot tell from what's public this quarter whether Q2's sharp decline is broad-based across lending segments or concentrated in one, and whether the Head Office allocation shift documented twice before continued, reversed, or simply stopped being disclosed at this cadence.
The currency-risk spike from last quarter mostly unwound
The Q1 2025 post flagged Mandiri's Net Open Position (overall) tripling to 3.67% at March 2025 - the largest quarterly increase in this backfill - as worth tracking into Q2. It has: NOP fell back to 1.44% at June 2025, most of the way back toward its more typical sub-1% historical range (though still up from 0.68% a year earlier). This reads as the March spike being a temporary positioning move around a volatile quarter (see the Q1 2025 post's share-price section on February's market-wide sell-off) rather than a lasting shift in the bank's foreign-currency exposure.
The bank's own filed ratio appendix returned - the mirror image of Q1's gap
The Q1 2025 post found the bank's own "Statement of Financial Ratios" appendix - present in every prior quarter back to Q1 2023 - missing from that quarter's filing. It's back this quarter, restoring the bank-only LDR, CASA, NIM, NPL, CAR, ROA, ROE and CIR figures used above directly from the filed appendix rather than computed from balance-sheet lines. The tradeoff flipped, though: this quarter has no results presentation, so the consolidated-basis versions of those same ratios (available in Q1 2025 via the presentation deck) aren't available this time.
A large FX swap book sits alongside a still-modest headline currency exposure
Bank Mandiri's Statement of Spot and Derivative Transactions discloses a swap notional of Rp186.37 trillion (Individual) as of June 30, 2025 - by far the largest single derivative-instrument category disclosed, dwarfing the bank's forward book (Rp82.10 trillion notional) and spot transactions (Rp14.87 trillion notional). This is disclosed gross notional, not risk exposure, and sits alongside the still-low 1.44% Net Open Position figure above - but the sheer size of the swap book relative to the bank's other FX instruments is a genuinely interesting scale fact a reader wouldn't get from the headline currency-risk ratio alone.
Bank guarantees issued grew faster than the loan book itself
Mandiri's commitments and contingencies note shows outstanding guarantees issued (Individual) rising to Rp158,284,415 million at June 30, 2025, up from Rp148,825,466 million a year earlier - a 6.4% increase, roughly in line with loan growth. More notable is guarantees received (a contingent receivable, not a liability) climbing faster, to Rp56,639,445 million from Rp50,138,716 million (+13.0%) - a growing base of third-party guarantees backing Mandiri's own credit exposure, disclosed only in this footnote table, not in the headline balance sheet.
Bank Mandiri Shares Kept Drifting Lower Through the Quarter
The Q1 2025 post closed at Rp5,200 on March 27, 2025, having partly recovered from February's Danantara-linked market-wide sell-off. That recovery didn't hold: shares drifted to Rp4,890 at end-April, briefly bounced to Rp5,300 at end-May, then closed the quarter at Rp4,880 on June 30, 2025 - a -6.2% net move for the quarter, and -20.7% below June 2024's Rp6,150 close. Unlike Q1's sharp single-month collapse tied to a specific, identifiable event, this quarter's drift reads as the market pricing in - ahead of the filing itself - the profit deceleration this post's numbers confirm, rather than a fresh shock of its own.
Coverage at a Glance
| Metric | H1 2025 | H1 2024 | YoY | Why it matters |
|---|---|---|---|---|
| Net income (attributable to owners) | Rp24.46T | Rp26.55T | -7.9% | First half-year YoY profit decline this backfill has tracked |
| Implied Q2 2025 standalone net income | ~Rp11.26T | ~Rp13.85T | ~-18.7% | The sharpest single-quarter profit decline this backfill has tracked |
| Cost-to-Income Ratio (bank-only) | 43.40% | 32.43% | +10.97pp | The clearest single ratio confirming the cost story behind the profit decline |
| Bank-only CAR | 18.35% | 19.35% | -1.00pp | But up 1.06pp from Q1 2025's 17.29% - a partial recovery |
| Bank-only Net Open Position | 1.44% | 0.68% | +0.76pp | But down sharply from Q1 2025's 3.67% - last quarter's spike mostly unwound |
| Share price (Jun 30, 2025 close) | Rp4,880 | Rp6,150 | -20.7% | Continued the post-February de-rating rather than reversing it |
Target Valuation Range
Market cap Rp455.47 trillion (~$28.06B), ~1.7x P/B, ~8.5x P/E. Bottom line: Mandiri now looks cheap on trailing multiples, but the multiple compression is tracking a genuine, newly-confirmed earnings deceleration rather than an overreaction - this isn't yet a clean value opportunity until the cost story above gets an explanation.
Using trailing-twelve-month net income attributable to owners of approximately Rp53,687,184M (FY2024's Rp55,782,742M less H1 2024's Rp26,550,640M plus H1 2025's Rp24,455,082M), implied TTM EPS of approximately Rp575.22, and the post-split share count of 93,333,333,332:
| Market cap → book value | Q2 2025 |
|---|---|
| Share price (period-end) | Rp4,880 |
| Shares outstanding | 93,333,333,332 |
| Market capitalization | Rp455.47 trillion (~$28.06B) |
| Total equity (book value) | Rp266,828,687M |
| Book value per share | Rp2,858.16 |
| Peer-multiple sanity check | Q1 2025 | Q2 2025 | Change |
|---|---|---|---|
| P/B | 1.9x | 1.7x | down |
| P/E | 8.6x | 8.5x | down |
P/E: ~8.5x, using TTM EPS of ~Rp575.22 against the Rp4,880 close on June 30, 2025. P/B: ~1.7x, using book value per share of approximately Rp2,858.16 (Rp266,828,687M total equity attributable to owners ÷ 93,333,333,332 shares). Market capitalization: approximately Rp455.47 trillion (~$28.06B). That's cheaper on both counts than the Q1 2025 post's ~8.6x P/E and ~1.9x P/B - the P/E held roughly flat (TTM earnings and the share price fell in similar proportion) while the P/B compressed further as book value per share fell on the same dividend that hit every Q1 in this backfill. The two open questions from the Q1 2025 post are still open here, and one just got harder to answer: whether the segment-level declines are substantially a cost-allocation artifact can't be checked this quarter at all (no segment note - see Beyond the Usual), right when it matters most given the sharp Q2 profit swing; whether the funding picture keeps stabilizing looks like a genuine yes, with bank-only LDR holding near 90% rather than climbing back toward last year's record highs.
PT Bank Mandiri (Persero) Tbk's unaudited consolidated financial statements for the period ended June 30, 2025 (with comparatives for December 31, 2024 and the period ended June 30, 2024), via Bank Mandiri's investor relations page.