Bank Mandiri Shares Hammered by Q1 Profit Fall
Jakarta. Shares of Bank Mandiri fell to more than a four-month low on Monday (16/5) after Indonesia's biggest bank by assets posted a 26 percent drop in first-quarter net profit due to a spike in provisions and costs of credit.
Mandiri shares dropped as much as 3.5 percent, their lowest level since Dec. 28. The stock was one of the heavyweight decliners on the Jakarta stock exchange that fell 0.63 percent.
Mandiri reported on Saturday a net profit of Rp 3.82 trillion ($286.9 million) for the three months ended March 31, down from Rp 5.14 trillion a year earlier.
Commodity-related sectors such as coal and oil and gas remained sluggish, said Ahmad Siddik Badruddin, director of risk management and compliance, at a briefing on Monday.
Maybank Kim Eng Securities said in a report that Mandiri's profit came below the broker's estimate, as it was "hit by lingering issue in asset quality".
Mandiri's non-performing loans are expected to continue rising until the third quarter, before "settling at 3 percent" by the end of the year, Maybank said.
Mandiri is looking at the possibility of expanding in Vietnam, Myanmar and the Philippines to help diversify its income in the longer term, Mandiri President Director Kartika Wirjoatmodjo told reporters.
"We think that the growth in those three markets is still good, the returns are still good, and the markets are also not saturated yet," Kartika said.
The state-controlled lender also said on Monday it planned to issue bonds worth up to Rp 5 trillion in the second half of this year, and to cut rates for loans worth below Rp 500 million.
More than 33 million Mandiri shares were traded, 1.4 times the average full-day volume over the past 30 days.
Reuters
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