Exceeding Industrial Growth, Bank Mandiri Records Credit Realization In The First Quarter Of 2024 Reaches IDR 1,435 Trillion

JAKARTA - PT Bank Mandiri (Persero) Tbk managed to disburse consolidated loans of IDR 1,435 trillion in the first quarter of 2024, an increase of 19.1 percent year on year (yoy).

This achievement surpassed industrial credit growth which grew by 12.4 percent on an annual basis at the end of March 2024.

Bank Mandiri President Director Darmawan Junaidi stated that Bank Mandiri's credit growth reflects the solid and resilient fundamental conditions of Indonesia's economy.

"Through the achievement of this intermediation function, Bank Mandiri emphasized its role as a development agent who seeks to contribute optimally to the economy in Indonesia," Darmawan said at a press conference in Jakarta, Tuesday, April 30.

Until the end of March 2024, the company's wholesale segment of credit managed to grow 25.2 percent yoy to reach IDR 751 trillion and retail loans grew 10.9 percent yoy to IDR 363 trillion.

Bank Mandiri's asset quality is also said to be better, compared to five large banks. It was noted that Gross bank only's non-performing loan ratio (NPL) which was maintained to the level of 1.02 percent as of March 2024, fell 68 basis points (bps) from the same period last year which was 1.7 percent.

In addition, Bank Mandiri is also very prudent and conservative in setting credit reserves, as reflected in the coverage ratio of bank only which is at the level of 368 percent.

The improvement in credit quality is also reflected in the cost of credit (CoC) which is maintained at a low level of 0.99 percent as of the end of March 2024.

In line with the implementation of a consistent business strategy accompanied by the optimization of digital channels, Bank Mandiri also managed to record a consolidated net profit of IDR 12.7 trillion in the first quarter of 2024, growing 1.13 percent yoy.

Darmawan explained that the financial performance growth was also driven by a series of Bank Mandiri's innovations and digital strategies.

One of them is through Super App Livin' by Mandiri which has been able to manage 846 million transactions in the first quarter of 2024, an increase of 41.7 percent yoy with the number of users reaching 24.4 million, up 40 percent yoy.

Meanwhile, the value of Livin' by Mandiri transactions in the first quarter of 2024 has reached Rp921 trillion, which also grew by 27.4 percent when compared to the same period as last year.

The presence of Livin' by Mandiri, continued Darmawan, has contributed to the company's non-interest income growth, which is reflected in Livin' (FBI) fee-based income (FBI) by Mandiri of IDR 557 billion, an increase of 25.5 percent YoY.

As for the Wholesale Digital Super Platform Kopra by Mandiri service, it has consistently succeeded in becoming a market leader for digital wholesale transactions by managing IDR 4,773 trillion transactions until the first quarter of 2024.

In addition, the growth of Kopra by Mandiri users has also more than doubled in the past year to 200 thousand users as of the end of March 2024, of which 93 percent of the giro are contributed by Kopra by Mandiri users.

This digital optimization also contributed to the growth of Bank Mandiri's consolidated third party funds (DPK) which reached 13 percent yoy from Rp1,391 trillion in the first quarter of 2023 to Rp1,572 trillion at the end of the first quarter of 2024. This growth was driven by savings which rose 10.6 percent yoy to Rp607 trillion on a consolidated basis.