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.