Bank Mandiri, the nation’s largest bank by assets, booked a 38 percent increase in net profit up to September of this year, on the back of higher fee-based income and strong loan growth, the bank said Thursday.
Mandiri’s net profit jumped to Rp 6.4 trillion (US$716 million) in the January-September period compared to Rp 4.6 trillion in the same period last year, partly thanks to its cash collection.
The lender collected Rp 1.13 trillion of bad debts from its debtors up to September of this year, bringing its non-recurring income to soar by 342.2 percent to Rp 1.59 trillion.
“Year-to-date, our cash collection reached Rp 1 trillion, and, if combined with the interests, it would reach Rp 1.13 trillion,” Mandiri’s chief financial officer Pahala Mansury told reporters at a press briefing at Plaza Mandiri in Jakarta.
Mandiri also booked a faster loan growth by September of this year, increasing by 23.1 percent to Rp 231.85 trillion compared to Rp 188.28 in the same period last year. The increase in the extraordinary income and faster loan growth further led Mandiri’s net interest income (NII) up by 17.4 percent to Rp 14.97 trillion compared to Rp 12.75 trillion last year.
Lower non-performing loans (NPL) and increasing net interest margin (NIM) also helped the NII growth. Gross NPL remained manageable at 2.6 percent versus 3.79 percent last year. Meanwhile, NIM expanded to 5.5 percent compared to 5.21 percent in September of 2009.
“Our fee-based income also helped the net profit jump,” Pahala said. Mandiri’s fee-based income rose by 46 percent to Rp 5.84 trillion from Rp 4 trillion in the first nine months of last year.
Mandiri held Rp 321.2 trillion in third-party funds up to September of this year, up 8.7 percent compared to last year’s Rp 295.5 trillion.
Faster loan growth compared to its increase of third party funds brought the lender’s loan-to-deposit ratio (LDR) up to 71.74 percent as of the end of September 2010, versus 62.77 percent in the same period last year.
On the other hand, strong loan growth has resulted in a slide of capital adequacy ratio (CAR) to 13.3 percent compared to last year’s 14.2 percent.
Mandiri’s assets, which up to September 2010 had 1,296 branches and 5,495 ATMs, grew by 11.7 percent to Rp 409.37 trillion up to September of this year.
Mandiri shares (BMRI) remained unchanged Thursday before the earnings announcement, to close at Rp 6,950 apiece. Mandiri has a total market capitalization of about Rp 150 trillion.
At a separate event, mid-sized lender Bank Permata also announced its third quarter financial results. The lender’s net profit jumped by 58 percent up to September of this year to Rp 789 billion versus Rp 500 billion in the same period last year, mainly thanks to strong loan growth.
Permata’s lending grew by 23 percent to Rp 46.4 trillion but its NPL slid to 0.9 percent from 2.1 percent by the end of September last year.
Third party funds grew faster than the bank’s loan growth at a 27 percent pace to Rp 53.6 trillion as of the end of September.
In line with the bank’s growth, Permata’s assets increased by 18 percent to Rp 67.1 trillion up to September.
Shares in Permata (BNLI) were traded at Rp 1,730 apiece on Thursday’s trading, down 0.57 percent, or 10 points, from a day earlier. BNLI, with a current total market capitalization of about Rp 15 trillion, has advanced by about 90 percent so far this year. (est/map)
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