Bank Mandiri Q1 profit up 16.6% as Agrinas drives loan growth

The bank is prioritising asset quality and underwriting discipline, leading to slower retail loan growth.

Bank Mandiri saw its net profit jump 16.6% year-on-year (YoY) for Q1 2026 thanks to lower cost of funds (CoF), stable asset quality, higher fee income, and cost discipline, said UOB Kay Hian (UOBKH).

Its participation in the Agrinas program—a government initiative where banks provide financing for agrarian projects—helped lift Bank Mandiri’s loans to a 16.2% YoY growth during the quarter. Loan disbursements related to Agrinas now make up 25% of Bank Mandiri’s total loans.

Retail loan growth was moderate at 1.9% YoY, however. Bank Mandiri is said to prioritise asset quality and maintains discipline in the underwriting process, said UOBKH analyst Posmarito Pakpahan.

Despite the stronger loan growth in Q1, Bank Mandiri maintains its target of a 7% to 9% loan growth for 2026, as it expects softer loan demand towards the end of the year.