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Bank Mandiri books 12% Q1 loan growth
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Loans issued by state-owned lender Bank Mandiri in the first quarter of this year grew 12.36 percent from the same period the year before.
T
he total value of loans granted by state-owned lender Bank Mandiri in the first quarter of this year grew 12.36 percent from the same period the year before to some Rp 1.2 quadrillion (US$80.85 billion), well on track to meet the bank’s annual loan growth target of between 10 and 12 percent.
More than half of Mandiri’s loans in the first quarter went to corporations or corporate subsidiaries. Loans to corporations grew 5.2 percent year-on-year (yoy) to Rp 396.2 trillion and loans to subsidiaries grew 20.7 percent yoy to Rp 278.3 trillion.
Loans to individuals, which comprise around 8 percent of the bank’s portfolio, grew by 10.8 percent yoy to Rp 103.8 trillion in the first quarter.
Darmawan Junaidi, president director of Bank Mandiri, said the hike in loan disbursement was closely related to the recovery of the Indonesian economy.
"[Through the growth,] Bank Mandiri emphasizes its role as a development agent that can give an optimum contribution to the country's economy," Darmawan said in a statement on Tuesday.
Read also: Major Indonesian banks hit loan brake after last year's frenzy
The bank also saw improvement in its loan quality, with non-performing loans (NPLs) dropping to 1.7 percent this March from the 2.74 percent in the same period last year.
