Bank Mandiri Profits Increase After Sloping Credit Restructuring

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri Tbk. said that the value of the company's credit restructuring continued to decline in line with the economic recovery process that was going well.

Bank Mandiri Corporate Secretary Rudi Asaturridha said this brought fresh air to the company's profit formation, which was getting stronger.

"Bank Mandiri's COVID-19-affected credit restructuring has reached its peak around the second quarter of 2021 and continues to show a gradual downward trend until April 2022," he said in a press statement on Wednesday, June 8.

According to Rudi, his party continues to monitor, including conducting regular stress tests and implementing early warning signs.

"This is useful so that the reserve position is at an optimal level," he said.

In detail, Rudi explained that the position of Bank Mandiri's COVID-19 credit restructuring was Rp. 64 trillion at the end of April 2022. This amount was much less than the highest position in June 2021, which was Rp. 32.48 trillion.

"This decrease comes from the ability to pay debtors who have shown improvement," he said.

Furthermore, the state-owned bank is known to be able to maintain the ratio of non-performing loans (NPL) at the level of 2.74 percent, down from the same period the previous year with 3.30 percent.

"The optimization of assets can also be seen from the position of Bank Mandiri's return on assets (ROA) which continues to improve to the level of 3.34 percent at the end of March 2022," he continued.

For information, this ratio is higher than the average ROA of conventional commercial banks of 2.34 percent and ROA of conventional state-owned banks of 3.00 percent in February 2022.

"This indicates that Bank Mandiri is able to manage all assets to support the business in producing optimal performance for the company," said Rudi.

Meanwhile, during the first quarter of 2022, Bank Mandiri recorded a consolidated net profit of Rp. 10.03 trillion, an increase of 70 percent on an annual basis. This good business performance was mainly driven by consolidated credit growth of 8.93 percent yoy to reach Rp. 1,072.9 trillion in the first quarter of 2022.