TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Bank Mandiri books net profit of Rp 13.5 trillion in H1
Bank Mandiri announced that its net profit grew 11.1 percent year on year.
Change Size
State-owned lender Bank Mandiri small business and networks director Hery Gunardi (Antara/-)
S
tate-owned lender Bank Mandiri announced that its net profit grew 11.1 percent year on year (yoy) to Rp 13.5 trillion (US$965.59 million) in the first half of 2019 as a result of net interest income growth.
Mandiri small business and networks director Hery Gunardi explained that the bank’s interest income had grown 14.85 percent to Rp 44.5 trillion. He also attributed its single-digit operational cost as the driving force for the profit growth.
Third-party funds had grown by an average of 6.8 percent yoy, while non-performing loans (NPL) had also fallen by 54 basis points (bps) to 2.59 percent in the second quarter – the lowest since the third quarter of 2015.
Hery said the lender had disbursed Rp 690.5 trillion in the first half, up by 12.1 percent yoy from Rp 616.1 trillion in the same period last year.
The corporate sector contributed the most to the loan growth, followed by the micro sector. However, the commercial sector remained stagnate as it decreased by 7.6 percent to Rp 131.4 trillion.
Meanwhile, the bank saw its net interest margin (NIM) compressed by 14 bps in the third quarter, falling to 5.58 percent this year from the 5.72 it recorded in the same period of 2018.
"Our portfolio shift to high-risk segments to low-risk ones has driven the NIM decrease. With lower risk, the bank's yield will generally be lower too," Hery said, adding that the NIM decrease had been slower than the industry's average of 20 bps.
Mandiri finance director Panji Irawan said the loan and profit growth was still in line with the latest 2019 projection, as the bank expected loan growth of 12 percent yoy and profit growth of 11.5 percent this year. (Bbn)
