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Bank Mandiri’s net profit slumps by 17.6 percent
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Kartika Wirjoatmodjo, Bank Mandiri’s president director, announced on Oct. 25 that Bank Mandiri’s net profit reached Rp 12 trillion in this year's third quarter, down 17.6 percent compared to the same period last year. (JP/win)
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tate-owned lender Bank Mandiri, reported on Tuesday that its net profit dropped by 17.6 percent in the third quarter of this year to Rp 12 trillion (US$922 million) due to increased provisions for bad loans.
Kartika Wirjoatmodjo, Bank Mandiri’s president director, said the company’s net profit slump occurred because it had decided to raise provisions by 87.4 percent to Rp 15.9 trillion in September this year.
“The increase in provisions indeed suppressed our net profit,” he told reporters during the company’s public expose in Jakarta.
Despite its profit falling, Kartika explained that conditions were better than the second quarter, where the business’s net profit declined by 28.7 percent.
Bank Mandiri has taken precautions by boosting provisions in a bid to ensure healthy and sustainable growth, and to anticipate the trend of increasing bad loans.
The country’s biggest lender by assets stated that its gross non-performing loans reached 3.81 percent of total lending at the end of September, compared to 2.81 percent year-on-year (yoy). (win/bbn)
