Bank Mandiri Net Profit Soars 24% to $1.9 Billion as Loan Growth Crushes Industry Average

JAKARTA, Investortrust.id — PT Bank Mandiri (Persero) Tbk (BMRI), Indonesia’s largest bank by assets, delivered a stellar first-half performance as net profit surged 24.4% year-on-year to Rp 30.4 trillion ($1.91 billion), fueled by aggressive credit expansion across state ecosystems and productive sectors.

The state-owned lender expanded its total loan book by 19.9% year-on-year to Rp 1,592 trillion ($100.12 billion) through June 2026, easily outpacing the national banking industry's average credit growth of 12.7%.

Bank Mandiri’s strong earnings signal resilient domestic demand in Southeast Asia's largest economy despite global macroeconomic uncertainties. By leveraging state-backed projects, commercial supply chains, and micro-lending, the bank is expanding its market share while maintaining strict asset quality, positioning its balance sheet to withstand potential rate fluctuations in the second half of the year.

State Ecosystems and Commercial Loans Power Growth

Lending to government ecosystems and state-owned enterprises (SOEs) served as the primary growth engine, soaring 41.6% year-on-year to Rp 489 trillion ($30.75 billion). Micro-business loans also maintained solid momentum, climbing 15.7% to Rp 31.3 trillion ($1.96 billion).

Bank Mandiri President Director Riduan highlighted the bank's targeted allocation strategy during the company's Q2 2026 public expose in Jakarta on Thursday, July 23, 2026.

"These interconnected ecosystems support national priority programs, ranging from financing strategic government projects and bolstering business competitiveness to widening financial access for MSMEs," Riduan said during the presentation.

In the commercial segment, outstanding credit expanded 15.1% year-on-year to Rp 343 trillion ($21.57 billion). The lender prioritized high-multiplier sectors, directing funds into plantations, downstream processing, transportation, logistics, and energy projects.

Strong Liquidity Buffer and Digital Scale

On the funding side, bank-only third-party funds (DPK) rose 17.1% year-on-year to Rp 1,710 trillion ($107.54 billion), handily outperforming the national industry deposit growth rate of 10.2%.

Accelerated digital adoption bolstered low-cost deposit gathering. Registered users on the bank's consumer super-app, Livin' by Mandiri, grew 24.3% year-on-year to roughly 41 million by June 2026, while its wholesale digital platform, Kopra by Mandiri, served 354,000 users, up 26.8% from the previous year.

Despite the rapid credit expansion, asset quality remained pristine. The bank's gross NPL ratio improved by 10 basis points to 0.98%, while Cost of Credit (CoC) fell to 0.52%, supported by a defensive NPL coverage ratio of 242%.

Watching Interest Rates and FX Risks in H2

Despite the banner first half, Bank Mandiri’s executive leadership expressed caution regarding macroeconomic headwinds over the remainder of 2026, pointing to benchmark interest rate trajectories, rupiah exchange rate stability, and global geopolitical friction.

Speaking at the online performance briefing on Thursday, July 23, 2026, Riduan outlined the primary risk factors the bank is monitoring for the second half of the year.

"The direction of interest rates will remain our primary focus because it directly affects funding dynamics for loan disbursement and overall economic activity," Riduan stated during the briefing. He added that the bank will prioritize prudent risk management to navigate foreign exchange volatility and global commodity shifts while maintaining its commitment to productive sector lending.