Bank Mandiri Press NPL raising Profit 25.4 Percent

By : Ahmad Fadli Dan Aldo Bella Putra | Tuesday, October 24 2017 - 22:00 IWST

Direktur Utama PT Bank Mandiri (Persero) Tbk Kartika Wirjoatmodjo (Foto Ist)
Direktur Utama PT Bank Mandiri (Persero) Tbk Kartika Wirjoatmodjo (Foto Ist)

INDUSTRY.co.id - Jakarta - PT. Bank Mandiri Persero Tbk boosted net profit growth of 25.4 percent to Rp15.1 trillion in the third quarter of 2017 following a cut in the provisioning cost as the non-performing loan (NPL) ratio improved.

Mandiri's non-performing loan (NPL) ratio in the third quarter of 2017 fell six basis points to 3.75 percent, while reserve costs improved Rp3.6 trillion, down 23 percent to Rp12.2 trillion.

"Profits rise because of our success to press the NPL, we do 'collection' and the restructuring of problem loans, so our income increases," said President Director of Bank Mandiri Kartika Wirjoatmodojo in Jakarta, Tuesday (24/10/2017)

Tiko, the familiar greeting of Kartika, targets at the end of NPL year Mandiri gross can be at 3.5 percent.

The BMRI-coded issuer also suppresses NPLs, by shifting lending from the commercial sector that since early 2017 has contributed to a decline in asset quality.

Mandiri's loan portfolio is not too aggressive. Mandiri Credit at the end of September 2017 grew 9.8 percent (yoy) or Rp686.2 trillion. The net interest margin (NIM) of Mandiri dropped to 5.86 percent from 6.5 percent.

"But the NIM is still adequate," he said sepert dilansir Antara.

With credit disbursement, Mandiri's assets rose to Rp1,078.7 trillion, or grew 10.6 percent (yoy).

In line with asset improvements, Mandiri's operating income rose 4.1 percent to Rp57.5 trillion. The fee-based income rose 18.4 percent to Rp16.8 trillion with the majority of "wholesales" or upper-middle segment revenues.

Mandiri Liquidity is characterized by a growth of third party funds (DPK) of 10.3 percent to Rp761.5 trillion.

"The growth is mainly driven by the growth of low-cost funds of 12.6 percent (yoy), reaching Rp492.5 trillion," he said. Thus, the ratio of low-cost funds to total deposits reached 64.7 percent.

News Comment

Today's Industry

Mechatronic Calotte Loader mWL.cs

Sabtu, 23 Januari 2021 - 17:50 WIB

Mechatronic Systemtechnik Unveils Proprietary Calotte Loader mWL.cs

A fully automated stand-alone system for transferring wafers between cassettes and calottes, the mWL.cs provides integrated device manufacturers (IDMs) an opportunity to increase yield and improve…

Synopsys Software

Rabu, 13 Januari 2021 - 18:40 WIB

Synopsys Recognised as a Leader in Static Application Security Testing by Independent Research Firm

Synopsys receives highest score among 12 SAST providers in current offering category.

Electro-Balancer (E-Balancer)

Rabu, 13 Januari 2021 - 16:00 WIB

ZASCHE Handling Rolls Out New Range of Electric Balancers

the E-Balancer is a versatile tool suited for a broad range of heavy-duty industrial applications.

Taylor Armerding, Software Security Expert at Synopsys Software Integrity Group (Photo by Linkedin)

Rabu, 13 Januari 2021 - 15:40 WIB

What is the Cost of Poor Software Quality in the U.S.?

And if you doubt its credibility, or that it applies to software, check out the latest report from the Consortium for Information & Software Quality (CISQ), in partnership with Synopsys, “The…

Nivedita Murthy - Senior Security Consultant, at Synopsys Software Integrity Group

Jumat, 08 Januari 2021 - 17:35 WIB

DevSecOps: The good, the bad, and the ugly

DevSecOps is the practice of integrating security into every stage of the DevOps pipeline.