Bank Mandiri's net profit growth to slow in 2025 due to opex adjustment

It is expected to be non-recurring.

Bank Mandiri’s net profit is expected to grow slower compared to earlier estimates for 2025-2026 estimates on the back of a one-off operating expenses (opex) adjustment in 2025.

A one-off opex dragged 2025 profit, pushing up opex to a 20% to 25% growth for the year. As a result, UOB Kay Hian has reduced its net profit estimate for Bank Mandiri by 10%.

The bank’s management has guided that the opex is non-recurring, implying that opex growth will normalise in 2026, said UOBKH analyst Posmarito Pakpahan.

Cost-to-income (CIR) ratio is expected to revert back to around 40% by 2026, from rising to 44.5% in the first six months of 2025.

Return on equity (ROE) is expected to stabilise at around 17%-18% compared to earlier assumptions of 19%-20%.