Bank Mandiri faces margin decline and stock collateral risks

Bank Mandiri is facing several financial pressures, including declining margins and new risks related to stock collateral. Management expects its net interest margin (NIM) to decrease to 4.1% in Q3 2026 from 4.37% in the first half of the year, driven by elevated funding costs.

Additionally, the bank’s balance sheet is being impacted by stock collateral used for credit facilities. Specifically, shares of Jhonlin Agro Raya (JARR) and Pradiksi Gunatama (PGUN) have been pledged to Bank Mandiri as collateral for credit facilities provided to affiliated companies. Mirae Asset Sekuritas research notes that the value of the pledged JARR and PGUN shares is estimated at approximately Rp 73 trillion as of October 8, 2026.