Up 27.4 Percent, Bank Mandiri Earns IDR 39.1 Trillion Profit In The Third Quarter Of 2023

JAKARTA - PT Bank Mandiri Tbk earned a profit of IDR 39.1 trillion, an increase of 27.4 percent compared to the same period the previous year (yoy).

Bank Mandiri President Director Darmawan Junaidi said the profit growth was the result of Bank Mandiri's strategy to focus on the ecosystem both in terms of financing and funding.

"In the future, of course Bank Mandiri will continue to innovate and transform to provide better services. Through proper business mapping, we are sure that Bank Mandiri will continue to grow and develop into a superior and competitive bank at the regional and global levels," Darmawan said at an online press conference in Jakarta, Monday, October 30, 2023.

This increase in profit was also accompanied by growth in Mandiri consolidated assets which reached Rp2,007 trillion as of September 2023 or grew 9.11 percent when compared to the same period the previous year or year on year (yoy).

Bank Mandiri President Director Darmawan Junaidi said the increase in total assets was also driven by the growth rate of credit and third party funds (DPK) which were able to grow positively.

It was recorded that Bank Mandiri managed to disburse loans on a consolidated basis of Rp1,315.92 trillion in September 2023 from the previous year's position of Rp1,167.51 trillion or grew 12.71 percent yoy.

The total third party funds (DPK) on a consolidated basis of Bank Mandiri grew positively 6.6 percent yoy from Rp1,361.3 trillion in September 2022 to Rp1,451.7 trillion at the end of September 2023 supported by low-cost funds or current account and saving account (CASA).

Bank Mandiri's total low-cost funds, namely Savings and Giro, managed to penetrate Rp. 1,070 trillion, an increase of 12.8 percent yoy.

Bank Mandiri's ratio of low-cost funds or CASA Ratio practically rose to 73.73 percent on a consolidated basis and 78.8 percent on a bank only basis in September 2023.

"It is better when compared to the same period the previous year which was 69.73 percent respectively on a consolidated basis and 73.2 percent on a bank only basis," Darmawan continued.

Meanwhile, in terms of asset quality, the bank only non-performing loan (NPL) position is sloping to the level of 1.36 percent as of September 2023.

This position is much better than the September 2022 period at the level of 2.26 percent or has dropped by 90 basis points (bps).

In maintaining asset quality, Bank Mandiri has also formed adequate reserves.

"As of September 2023, we have prepared sufficient reserves, with the NPL Coverage ratio only reaching 339.34 percent, an increase from the position in September 2022 which was 292.28 percent," said Darmawan.

As for the end of September 2023, Bank Mandiri's credit restructuring position has decreased to IDR 23.8 trillion.

This amount is much lower than September 2022 at IDR 45.6 trillion, or a decrease of -47.81 percent yoy.

According to Darmawan, this decline was driven by the repayment and payment of debtors' installments, and the businesses of debtors who had returned to normal.

"Thanks to discipline in implementing risk management, Bank Mandiri's cost of credit (CoC) on a bank only basis, it was successfully reduced to 0.73 percent as of September 2023. It is much better than the previous year's period of 1.30 percent," concluded Darmawan.