First Quarter 2021 Performance: Bank Mandiri Prints Net Profit Of IDR 5.9 Trillion, Down IDR 2 Trillion From 2020

Public exposure to Bank Mandiri's performance in the first quarter of 2021. (Photo: Capture the screen of Bank Mandiri)

JAKARTA - PT Bank Mandiri Tbk is said to have achieved a consolidated net profit of Rp. 5.9 trillion in the first quarter of 2021. The book was corrected by about 25 percent from the achievement of the same period the previous year of Rp. 7.9 trillion.

Based on the performance presentation held by the company today, it was revealed that the profit before provision (PPOP) was IDR 14.1 trillion or grew 1.7 percent year-on-year (yoy).

In terms of intermediation, Bank Mandiri recorded consolidated credit growth of 9.1 percent yoy to IDR 984.8 trillion.

On a bank only basis, lending until the first quarter of 2021 reached Rp. 779.0 trillion, supported by the wholesale segment, which grew slightly by 0.18 percent to Rp. 513.9 trillion.

The increase also occurred in the MSME segment, which rose 3.22 percent to Rp92.1 trillion.

The incision is supported by the ratio of non-performing loans (NPL) which is maintained at around 3.15 percent and the reserve to NPL ratio of more than 220 percent.

“This growth rate is a positive sign that Indonesia's economy will soon recover. Therefore, we will continue to be vigilant in executing future business plans, ”said Bank Mandiri President Director Darmawan Junaidi in a virtual press conference, Tuesday, April 27.

Furthermore, several economic sectors that have become the focus of lending in the wholesale segment include the consumer, plantation and construction sectors.

Meanwhile in the MSME sector, the outstanding KUR portfolio also grew rapidly in the range of 35.4 percent to Rp46.2 trillion, of which Rp9.6 trillion was distributed to 99,162 debtors in the first three months of this year.

Then, for the collection of third party funds (DPK), the bank with the issuer code BMRI in consolidation achieved 25.5 percent growth of Rp1,181.3 trillion with the dominance of cheap funds 67 percent.

DPK on a bank only basis also increased by 15.6 percent to Rp947.8 trillion with a CASA ratio of 71.2 percent, mainly driven by growth in demand deposits that reached 41.73 percent to Rp335.9 trillion.

"Our success in improving the composition of cheap funds has also helped reduce the cost of funds or cost of funds on a year-to-date (bank only) basis to only 1.80 percent, down from 2.83 percent in March 2020," he said.

The increase in DPK and lending contributed to the formation of the company's assets on a consolidated basis, reaching Rp1,584.1 trillion.

"The significant increase in assets was mainly driven by the success of the Bank Syariah Mandiri merger process," he said.

Through credit and deposits, this state-owned bank was able to improve the company's profitability ratio.

It was said that, consolidated, the revenue realization of this state-owned bank grew 7.2 percent to IDR 25.6 trillion. The support is an increase in net interest income (NII) by 12.6 percent to IDR 17.5 trillion.

"The results of the performance at the beginning of this year show that currently the company is on the right track to book better performance than the previous year. The company will prioritize the principle of prudence in executing various business plans, "Darmawan concluded.