Credit Growth Becomes A Factor For Bank Mandiri To Print Rp27.5 Trillion Of Cuan

President Director of Bank Mandiri, Royke Tumilaar. (Photo: Bank Mandiri)

JAKARTA - PT Bank Mandiri (Persero) Tbk posted a brilliant performance in 2019. The company managed to score a net profit of Rp27.5 trillion in 2019, or grew 9.9 percent compared to the profit in 2018.

President Director of Bank Mandiri Royke Tumilaar said this achievement was supported by consolidated credit growth of 10.7 percent (year on year) to reach IDR 907.5 trillion at the end of last year.

"From these disbursements, the company managed to record a net interest income of Rp59.4 trillion, an increase of 8.8 percent (year on year) compared to the previous year," Royke said in a statement received by VOI, Friday, January 24.

Bank Mandiri also succeeded in improving the quality of loans disbursed so that the ratio of gross non-performing loans (NPL) fell to 2.33% compared to NPL at the end of 2018.

"In lending, we always rely on a rigorous sector review and assessment of the company's character to ensure fulfillment of obligations by prospective debtors. We are also trying to maintain the portfolio composition of the wholesale and retail (bank only) segments, which are currently in the range of 65 percent and 35 percent in order to provide optimal returns, "said Royke.

He explained, the company's portfolio (bank only) in the wholesale segment until the fourth quarter of 2019 reached IDR 516.4 trillion or grew 9.3 percent (year on year). Meanwhile, the retail segment amounted to Rp275.9 trillion, growing by 11.9 percent on an annual basis.

If corporate credit is the main support for the wholesale segment reaching Rp. 329.8 trillion, then micro credit and consumer credit will become the mainstay of the retail segment with Rp. 123.0 trillion and Rp. 94.3 trillion, respectively.

"Our corporate credit grew well in the range of 7.7 percent (year on year) compared to the previous year, while the distribution of micro credit rose 20.1 percent (year on year)," he said.

While consumer credit at the end of 2019 grew 7.9 percent (year on year), the credit card and auto loan businesses became the largest contributors with an expansion rate of 20.1 percent each (year on year) to Rp13. 8 trillion and 9.6 percent (year on year) to IDR 34.6 trillion.

Bank Mandiri maintains a significant composition of productive loans, such as investment and working capital loans, at 77.4 percent of the total portfolio. At the end of last year, investment credit disbursement was recorded at IDR282.6 trillion and working capital credit at IDR330.3 trillion.

Bank Mandiri also contributes to national development, in the form of lending to the infrastructure sector which reached IDR208.9 trillion with a growth rate of 14.6 percent (year on year).

"The credit is distributed to various sectors such as electricity, transportation, oil and gas, renewable energy, and others," said Royke.

For the People's Business Credit (KUR) program, throughout 2019, the total KUR distributed reached IDR 25.02 trillion, growing 42.3 percent or reaching 100.09 percent of the 2019 target with 310,987 borrowers.

"Of this amount, 50.10 percent goes to the production sector, namely agriculture, fisheries, processing industry and production services," said Royke.

In addition to the KUR program, Bank Mandiri's efforts to build the real sector were also realized through the distribution of MSME loans amounting to Rp92.23 trillion at the end of last year, growing 9.85 percent year on year, to 928,798 MSME players.

"One of our strategies in building the MSME sector is by leveraging the value chain of wholesale customers, both becoming Bank Mandiri's MSME customers and becoming the target market for the production of Bank Mandiri's MSME customers," said Royke.