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Bank Mandiri sees profit nosedive in 2016 amid rising NPL
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Maintaining optimism: President director of state-owned lender Bank Mandiri Kartika "Tiko" Wirjoatmodjo (second left) speaks to reporters during a press conference on Tuesday as other executives of the company look on. (JP/Prima Wirayani)
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tate-owned lender Bank Mandiri saw its net profit plummet by 32.1 percent year-on-year (yoy) to Rp 13.8 trillion (US$1.03 billion) last year on the back of rising bad debts.
The publicly listed lender saw its gross non-performing loan (NPL) ratio soar to 4 percent in 2016 from 2.6 percent a year earlier while its net NPL ratio increased to 1.53 percent from 0.9 percent.
"The decreased [net] profit was caused by a rising loan-loss provision of up to Rp 24.6 trillion due to the increasing NPL," Bank Mandiri president director Kartika "Tiko" Wirjoatmodjo told a press briefing in Jakarta on Tuesday.
Tiko attributed the increasing NPL ratio to “global economic pressure, a sluggish domestic economy and weak commodity prices."
(Read also: Bank Mandiri books Rp 23t tax amnesty repatriation)
Bank Mandiri's profit before the provision stood at Rp 43.3 trillion, up by 12.7 percent yoy.
Throughout 2016, Bank Mandiri channeled Rp 662 trillion in loans, up by 11.2 percent yoy, while its third party funds grew by 12.7 percent yoy to Rp 762.5 trillion.
Despite the soaring bad debt, Bank Mandiri still managed to maintain its standing as the country's largest lender by consolidated assets. Last year, it had Rp 1,038.7 trillion worth of assets, a jump of 14.1 percent yoy. (hwa)
