Kiwoom Research | 9M26 Equity Update - 28 October 2026 PT. Bank Mandiri (Persero) Tbk. (BMRI) Resilient 9M26 Earnings Amid Margin Pressure Key Takeaways: - 9M26 Earnings Remained Resilient. BMRI recorded PATMI of IDR 45.5tn (+20.7% YoY), supported by PPOP growth of 17.5%, stronger non-interest income, and disciplined operating expenses despite continued NIM pressure. - Wholesale Lending Continued to Drive Growth. Gross loans reached IDR 1,694tn (+15.4% YoY), led by Corporate and Commercial lending. Meanwhile, CASA improved to 70.6%, although funding costs remained elevated. - Asset Quality Warrants Closer Monitoring. LaR increased to 6.76% from 5.83% in 1H26, driven by higher performing restructured loans. However, gross NPL remained stable at 1.02%, with CoC at 0.63%. Recommendation: "BUY" We maintain our "BUY" rating on BMRI. Our valuation is based on a blended approach, assigning 60% weight to DDM and 40% to P/BV. We revise our 12-month target price to IDR 4,800 (from IDR 5,400), implying 24.03% upside from the last close of IDR 3,870 on 27 October 2026. The revision primarily reflects a higher cost of equity amid uncertain market conditions and broader market volatility, rather than weaker earnings fundamentals. Downside risks include prolonged NIM pressure, elevated funding costs, deteriorating asset quality, and continued market uncertainty. Kevin Yudha Pratama Equity Research KIWOOM SEKURITAS INDONESIA