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Bank Mandiri books Rp 20.6t net profit in 2017
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Bank Mandiri president director Kartika Wirjoatmodjo (JP/win)
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tate-owned lender Bank Mandiri announced that its 2017 profit grew by 49.5 percent year on year (yoy) to Rp 20.6 trillion (US$1.52 billion), particularly as a result of the decline in reserve costs from Rp 24.6 trillion in 2016 to Rp 16 trillion.
Bank Mandiri president director Kartika Wirjoatmodjo said on Tuesday in Jakarta that the decrease in reserve costs was caused by an improvement in the bank’s gross non-performing loan (gross NPL) to 3.46 percent in 2017 from 4 percent in 2016.
Meanwhile, its net NPL fell to 1.18 percent in 2017 from 1.53 percent in the previous year, Kartika said as reported by kompas.com.
The profit growth was also supported by a 0.6 percent increase in net interest income (NIT) to Rp 54.8 trillion and by 16.4 percent in service income to 23.3 trillion.
He said NII only grew by 0.6 percent because the net interest margin (NIM) of the bank declined from 16.44 percent to 5.87 percent.
Bank Mandiri disbursed Rp 729.5 trillion in 2017, or grew by 10.2 percent yoy he said, adding that the loans were mostly channled to those infrastructure projects that grew by 58.7 percent yoy to Rp 141 trillion.
Transportation projects received Rp 37.3 trilliont, electricity projects Rp 31.3 trillion, oil and gas and renewable energy projects Rp 18.4 trillion, construction projects Rp 15.5 trillion, public housing and urban facility projects Rp 10.6 percent, telematics Rp 9.3 trillion and road projects Rp 7.6 trillion, with the remaining Rp 10.8 trillion to other projects. (bbn)
