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

SUNeVision Initiates MEGA IDC Phase Two Development

Jumat, 28 Maret 2025 - 22:21 WIB

SUNeVision Initiates MEGA IDC Phase Two Development

SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

 PT Metrodata Electronics Tbk (“MTDL”)

Jumat, 28 Maret 2025 - 22:07 WIB

TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary

PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Wireless Logic

Jumat, 28 Maret 2025 - 22:00 WIB

Wireless Logic Selected By Thales As IoT Connectivity Partner

Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Microvista Expands International Presence with Mobile CT System ScanExpress

Jumat, 28 Maret 2025 - 21:53 WIB

Microvista Expands International Presence with Mobile CT System ScanExpress

The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…

Pekerja Industri Tekstil

Jumat, 28 Maret 2025 - 21:44 WIB

Turning Loss into Profit, INOV Optimistic in Maintaining Positive Performance this Year

PT Inocycle Technology Group Tbk (INOV:IJ) Indonesia's leading and largest PET waste recycling Company managed to book sales of IDR 629 Billion in 2024, an increase of 4.8% compared to the previous…