PT Bank Mandiri (Persero) Tbk (BMRI) Solid 1H26 Earnings Offset Margin Pressure Key Takeaways: * 1H26 Earnings Remained Strong. BMRI booked PATMI of IDR 30.4tn (+24.4% YoY), supported by PPOP growth of +19.9%, non-interest income growth of +14.9%, disciplined expense management, and lower provisions, despite consolidated NIM declining to 4.56%. * Wholesale Loans Drove Growth, but Pressured Yields. Total loans reached IDR 1,677tn (+19.2% YoY | +3.9% QoQ), led by Corporate and Commercial lending. CASA remained solid at IDR 1,220tn (+5.7% YoY | +0.4% QoQ), although stronger time-deposit growth lowered the CASA ratio to 69.2%. * Asset Quality Remained Healthy. Gross NPL stood at 1.01%, LAR improved to 5.83%, and CoC remained contained at 0.61%, indicating that credit risks remain well managed. Recommendation: “BUY” We maintain our “BUY” recommendation on BMRI. Our valuation is derived through a blended valuation approach, combining P/BV and DDM. We determine a 12-month target price of IDR 5,400, implying a 32.03% upside potential from the last close of IDR 4,090. At our target price, BMRI would trade at a 2026F P/BV of 1.5x, above its three-year SD-1 P/BV baseline of 1.35x. Downside risks include prolonged NIM pressure, tighter liquidity, weaker loan growth, and deteriorating retail asset quality. Liza Camelia Suryanata Head of Research Kevin Yudha Pratama Equity Research KIWOOM SEKURITAS INDONESIA