Nomura expects weak first-half 2025 results for Indonesian banks, citing soft loan demand and continued tight liquidity despite upcoming SRBI maturities.
While government spending may lift performance in the second half, the firm sees 2025 loan growth staying below 10% annually.
It lowered loan growth forecasts by 1% to 4% for financial year 2025 to 2027, cutting the projected three-year CAGR to 8% from 9%.
Liquidity conditions remain strained, with M2 growth around 5% and loan-to-deposit ratios (LDR) seen at about 91%.
Nomura maintained Buy ratings on Bank Negara Indonesia, Bank Syariah Indonesia, Bank Rakyat Indonesia, Bank Central Asia, and Bank Mandiri.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.