Bank Mandiri Earns IDR 25.2 Trillion Net Profit in Semester I-2023

Illustration of independent banks (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) earned a consolidated net profit of IDR 25.2 trillion in the first semester of 2023. This amount increased by 24.9 percent compared to semester I-2022.

"This profit growth is the result of Bank Mandiri's new strategy which focuses on ecosystems, both in terms of financing and funding," said Bank Mandiri Main Director Darmawan Junaidi, citing Antara, Monday, July 31.

Darmawan said that bank credit grew on a consolidated basis by 11.8 percent yoy to IDR 1,272.07 trillion. This growth is higher than the banking industry's growth in June 2023 which was at the level of 7.8 percent.

In detail, bank credit growth was supported by the commercial credit segment which increased 18.9 percent yoy to IDR 215.7 trillion. Then, credit for micro, small, and medium enterprises (MSMEs) rose 11.7 percent yoy to IDR 72.3 trillion. Meanwhile, consumer segment loans increased 11.3 percent yoy to IDR 106 trillion, he said.

According to Darmawan, positive banking performance can also be seen from the increasing profitability side. 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.

On the other hand, Bank Mandiri's total consolidated third party funds (DPK) grew positively by 8.47 yoy, from IDR 1,318.42 trillion in the second quarter of 2022 to IDR 1,430.13 trillion in the second quarter of 2023. DPK growth was supported by low-cost funds or current accounts and savings accounts (CASA).

He said that banks saw TPF growth driven by the performance of Livin' and Kopra by Mandiri digital services. Bank Mandiri manages more than 1.3 billion transactions with a total value of IDR 1,500 trillion, up 43.4 percent yoy through the application.

Meanwhile, the Kopra by Mandiri Wholesale Digital Super Platform service has managed to manage IDR 9,262 trillion in transactions until the second quarter of 2023 or grew 8.6 percent yoy, said Darmawan.

Then, consolidated Bank Mandiri savings grew 5.80 percent yoy to IDR 552.4 trillion and consolidated current accounts shot 21.2 percent yoy to IDR 497.6 trillion.

Bank Mandiri's asset quality is also maintained amidst global uncertainty. This is reflected in Bank Mandiri's Non-Performing Loan (NPL) ratio, which has fallen to a level of 1.53 percent as of June 2023, down 94 basis points (bps) from the record for the June 2022 period of 2.47 percent.

The bank-only NPL coverage ratio stood at 342.2 percent, an increase from the second quarter of the previous year which was 274.5 percent.

Meanwhile, Bank Mandiri's credit restructuring position affected by Covid-19 has been sloping to IDR 26.6 trillion.

The cost of credit or cost of credit (CoC) for Bank Mandiri on a bank-only basis was able to be reduced to 0.98 percent as of June 2023, much better than the previous year's period of 1.27 percent, said Darmawan.