Bank Mandiri posted a 49 percent jump in net profit last year. (Reuters Photo/Beawiharta)

Bank Mandiri Profit Soars 33% in H1 on Strong Loan Growth, Fee-Based Income

BY :SARAH YUNIARNI

JULY 19, 2017

Jakarta. Bank Mandiri booked a 33.7 percent year-on-year increase in net income in the first half of 2017, on the back of strong loan growth and a surge in fee-based income.

In its consolidated financial report published on Wednesday (19/07), the state-controlled bank booked Rp 9.5 trillion ($713 million) in net income in the January-June period, compared with Rp 7.08 trillion in the same period last year.

"We are grateful for our positive financial achievements in the first half of this year. This proves that our efforts to improve the business since last year have delivered a significant result," Bank Mandiri president director Kartika Wirjoatmodjo said in a statement.

The bank's net interest income – income from lending money to customers after deducting the costs of paying depositors – grew by 6 percent to Rp 25.7 trillion, while noninterest income – income from fees, commissions and foreign exchange gains – increased by 18.5 percent to Rp 10.8 trillion.

Bank Mandiri's total outstanding loans stood at Rp 682 trillion in the first half of this year, having increased by 11.6 percent from the same period last year due to robust growth in consumer loans and micro-loans.

For its long-term strategy until 2020, the company plans to focus on salary-based loans and consumer loans, including automotive financing.

The lender saw its ratio of gross nonperforming loans (NPL) narrow by 3.82 percent from 3.86 percent in the corresponding period in 2016, while its net NPL also shrank to 1.44 percent from 1.53 percent.

Bank Mandiri's total assets increased by 9.9 percent to Rp 1,067.4 trillion, strengthening its position as the country's biggest lender by assets.

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