The bank’s net profit declined a steep 30.7 percent year-on-year (yoy) to Rp 14.03 trillion (US$956 million) during the first nine months of this year from Rp 20.25 trillion in the same period last year.

“With the conclusion of 2020’s third quarter, Bank Mandiri has its focus on two main things: pushing for the national economic recovery and sustaining a healthy growth,” Bank Mandiri’s newly appointed president director, Darmawan Junaidi, said during a virtual public expose on Monday. 

Darmawan said the bank would prioritize maintaining loan growth while pursuing efficiency measures and accelerating digital innovation to sustain growth. 

Bank Mandiri saw loan disbursement grow 3.79 percent yoy to Rp 873.7 trillion at the end of the third quarter. At the same time, the banking industry saw 0.12 percent yoy loan growth as of September, according to Financial Services Authority (OJK) data.

The country’s banking industry has continued to weather the impacts of the health crisis this year. As loan growth cools, the COVID-19 outbreak has disrupted business activities, resulting in weakening demand and purchasing power that has adversely affected loan repayments.

Amid the increase in loan growth, Bank Mandiri’s ratio of non-performing loans (NPLs) – the number of loans in default as a percentage of total loans – stood at 3.33 percent as of September this year, an increase of 80 basis points from 2.53 percent in the same period last year.

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