Bank Mandiri Records Credit Distribution Increases 16.3 Percent Reaches IDR 1,398.1 Trillion

Bank Mandiri (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) recorded a credit disbursement of Rp1,398.1 trillion, an increase of 16.3 percent (yoy) exceeded industrial credit growth of 10.38 percent (yoy).

Bank Mandiri President Director Darmawan Junaidi explained that impressive credit growth occurred in all segments, one of which was dominated by corporate loans which reached IDR 490 trillion at the end of 2023, growing 18.3 percent (yoy).

In addition, commercial credit also made a positive performance with the highest growth compared to other segments, which amounted to 21.2 percent (yoy) to IDR 238 trillion at the end of 2023.

"In maintaining the momentum of economic growth, Bank Mandiri is committed to jointly encouraging economic sustainability in potential sectors in each region including the SME (small medium enterprise) and Micro segments," he said at a virtual Bank Mandiri performance press conference, Wednesday, January 31, 2024.

Meanwhile, the SME segment grew to 14 percent (yoy) to Rp77 trillion. Furthermore, the micro segment grew to 10.4 percent (yoy) touching Rp168 trillion.

This growth is also offset by the quality of assets that continue to improve. As of the end of 2023, Bank Mandiri's Non Performing Loan (NPL) ratio on a bank basis only managed to drop by 86 basis points (bps) by (yoy) to the level of 1.02 percent.

Although NPL has decreased relatively, the company still maintains the reserve ratio (NPL coverage ratio) at the conservative level of 384 percent.

Bank Mandiri's financial performance throughout 2023 shows good momentum and on track and is followed by the application of mature precautionary principles, as can be seen from the quality of assets that continue to improve. We are optimistic that in 2024 the performance growth room will still be open," he said.

Darmawan also said that the intermediation function was also balanced with consolidated growth in the DPK which grew by 5.78 percent (yoy) to Rp1,577 trillion in 2023.

Darmawan added that the growth in the DPK was driven by an increase in low-cost funds of 7.05 percent on an annual basis, which was supported by demand growth of 7.92 percent (yoy) to IDR 585 trillion and savings which increased 6.19 percent (yoy) to IDR 587 trillion.

According to Darmawan, the growth helped encourage the composition of low-cost funds to continue to increase to reach 74.3 percent on a consolidated basis and 79.4 percent on a bank only basis, and contributed to maintaining the bank's Cost of Fund (CoF) at a low level of 1.75 percent.

"The increase in low-cost funds cannot be separated from Bank Mandiri's digital initiative throughout 2023. Until the end of 2023, the CASA ratio position on a bank only had reached 79.4 percent, the highest record in the history of Bank Mandiri," he said.