Supporting Economic Growth, Bank Mandiri Distributes Credit Reaching IDR 1,272.07 Trillion by the Second Quarter of 2023

Photo: Doc. Bank Mandiri

JAKARTA - Bank Mandiri continues to promote economic growth by actively channeling financing. Bank Mandiri, on a consolidated basis, managed to distribute loans on a consolidated basis, growing 11.8 percent year on year (yoy) reaching IDR 1,272.07 trillion. This credit growth is far above the banking industry's growth in June 2023 of 7.8 percent YoY.

Main Director of Bank Mandiri Darmawan Junaidi assessed that the increase in Bank Mandiri's credit is certainly inseparable from Indonesia's increasingly solid economic fundamentals.

"In encouraging lending, we remain focused on prospective sectors and are derivative businesses from the wholesale segment ecosystem in each region. Bank Mandiri's solid performance achievements are also in line with Indonesia's economic conditions which are still growing amid global uncertainty," he said in Jakarta, Monday 31 July.

The impressive intermediation function, continued Darmawan, is evenly distributed across all segments. Mainly from commercial lending which increased 18.9 percent yoy to IDR 215.7 trillion, SME (small medium enterprise) loans increased 11.7 percent yoy to IDR 72.3 trillion and consumer segment loans increased by 11.3 percent yoy to IDR 106 trillion.

This credit growth is in line with the company's increasingly solid financial performance. Reflected in Bank Mandiri's net profit on a consolidated basis, it shot up 24.9 percent yoy to IDR 25.2 trillion until June 2023.

Darmawan said that the profit growth was the result of Bank Mandiri's new strategy which focuses on ecosystems both in terms of financing and funding.

Bank Mandiri's performance can also be seen in terms of profitability which continues to increase. Return on Equity (ROE) Tier-1 bank only has touched 25.8 percent or up 275 basis points (bps) YoY. Meanwhile, the position of the bank only net interest margin (NIM) was maintained at a solid level of 5.30 percent.

The Result of Digital Transformation

Darmawan further added that Bank Mandiri's digital transformation efforts have also produced positive results. This result is reflected in Bank Mandiri's digital transactions through Livin' and Kopra by Mandiri which grew significantly.

Through a series of innovations carried out in the past year, Bank Mandiri's super complete banking application has managed more than 1.3 billion transactions with a total value of Rp. 1,500 trillion, up 43.4 percent year on year (YoY). Meanwhile, as of mid-2023, Bank Mandiri's super flagship application has been downloaded more than 28.5 million times with a total of 19.2 million users.

As for the Kopra by Mandiri Wholesale Digital Super Platform service, it has managed to manage IDR 9,262 trillion in transactions until the second quarter of 2023 or grew 8.6 percent YoY. The growth of Kopra by Mandiri users, which is now also available in the mobile app version, also increased by 123.2 percent yoy to 123,000 users.

"The presence of Livin' and Kopra by Mandiri also contributed to significant growth in third party funds (DPK), especially low-cost funds. This proves that the digital transformation carried out by Bank Mandiri has succeeded in contributing significantly to financial performance with an improving trend," added Darmawan.

Sure enough, Bank Mandiri's total consolidated third party funds (DPK) grew positively 8.47% YoY from IDR 1,318.42 trillion in the second quarter of 2022 to IDR 1,430.13 trillion at the end of the second quarter of 2023 which was supported by low-cost funds or current account and saving account (CASA). Savings on a consolidated basis grew 5.80% yoy to IDR 552.4 trillion and current accounts on a consolidated basis shot up 21.2% yoy to IDR 497.6 trillion.

It doesn't stop there, Bank Mandiri's digital transformation is also carried out by digitizing branch offices to optimize service to customers. Titled Smart Branch, this bank with the golden ribbon logo has transformed 241 branch offices throughout Indonesia.

Through the consistency of business development and digital transformation, Bank Mandiri (BMRI) shares also managed to carve a price strengthening to a new all-time high or all-time high of IDR 5,700 per share on Thursday trading July 27.

In fact, since the stock split with a ratio of 1:2 on April 4 2023, BMRI's shares have increased by around 8.2 percent as of Thursday's trade, July 27.