Jakarta. Bank Mandiri (IDX: BMRI) has responded to Moody’s Ratings’ decision to revise the outlook on five major Indonesian banks, including the state lender, to negative from stable, stressing that external assessments of the banking sector are shaped by multiple factors.

Corporate Secretary Adhika Vista said macroeconomic dynamics, exchange-rate movements, and each bank’s underlying fundamentals all influence such evaluations.

“This serves as a reminder for Bank Mandiri to anticipate external dynamics in order to maintain sustainable fundamentals,” Adhika said on Thursday.

Looking ahead, he added, the bank will strengthen anticipatory measures against external risks by reinforcing liquidity and capital management while maintaining financing quality. At the same time, Bank Mandiri will uphold disciplined risk management and continue its sustainable growth strategy.

“This is aligned with regulatory policies and Bank Mandiri’s role as a strategic partner of the government in safeguarding financial system stability and supporting national economic growth,” Adhika said.

On Feb. 6, 2026, Moody’s downgraded the outlook on five large Indonesian banks, including BMRI, to negative, highlighting several fundamental challenges facing each institution.

Capital and Asset Quality Risks
Moody’s noted potential pressure on Bank Mandiri’s capital position due to high dividend payouts, alongside rising credit risk linked to rapid loan growth in previous periods. Moody’s also flagged asset-quality pressure in certain segments and significant exposure to commodities and higher-risk sectors.

According to Moody’s, Bank Mandiri’s return on tangible assets (ROTA) declined to 2.2% in the first nine months of 2025 from 2.7% a year earlier, driven by higher operating expenses and a narrowing net interest margin (NIM) amid rising funding costs.

The rating agency expects ROTA to remain around 2.2% in 2026 as moderate NIM compression and higher credit costs persist. However, Moody’s projects the bank’s funding and liquidity to stay relatively stable, supported by a strategy to maintain strong transaction-banking funding.

Despite the negative outlook, Bank Mandiri’s deposit rating and baseline credit assessment remain at Baa2, reflecting solid capitalization, stable funding, and strong profitability.

As of Thursday at 1:05 p.m. local time, BMRI shares traded at Rp 5,050, up 25 points or 0.5%, moving within a range of 5,000 to 5,075 and giving the bank a market capitalization of Rp 466.62 trillion ($27.72 billion).

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