An Increase Of 59.4 Percent, Bank Mandiri's Third Quarter Of Profit And Expenditure IDR 30.7 Trillion

President Director of Bank Mandiri Darmawan Junaidi. (Photo: Doc. Antara)

JAKARTA - Bank Mandiri's consolidated net profit in the first nine months of 2022 has surpassed the achievements in 2021.

The net profit in the third quarter of the bank codenamed BMRI has grown by 59.4 percent on an annual basis or year on year (yoy) has reached Rp30.7 trillion.

Bank Mandiri President Director Darmawan Junaidi said the profit growth was the result of Bank Mandiri's new strategy which focused on the ecosystem, both in terms of financing and funding.

As a result, Bank Mandiri's credit realization on a consolidated basis was recorded until the end of September 2022, which managed to grow 14.28 percent yoy to reach IDR 1,167.51 trillion.

Credit growth is far above industry growth in September 2022 of 11 percent yoy.

Darmawan said that Bank Mandiri's increase in credit was certainly inseparable from the solid economic fundamentals of Indonesia.

"In encouraging credit distribution, we remain focused on prospective sectors and are derivative businesses of the wholesale segment ecosystem in each region. The solid achievement of Bank Mandiri's performance is also in line with Indonesia's economic conditions which are still growing amidst global uncertainty," he said in Jakarta, Wednesday, October 26.

The impressive intermediation function, continued Darmawan, is evenly distributed in all segments. One of them is corporate loans, which became the main pillar of Bank Mandiri's business, grew positively by 12.2 percent yoy to IDR 410 trillion at the end of September 2022.

Bank Mandiri's performance can also be seen in terms of profitability which continues to increase.

Return on Equity (ROE) Tier-1 bank only touched 23.28 percent or an increase of 822 basis points (bps) yoy.

Meanwhile, the consolidated net interest margin (NIM) position is solidly maintained at the level of 5.42 percent.

Digital Transformation Contribution

Darmawan said Bank Mandiri's digital transformation efforts had also yielded positive results.

This result is reflected in Bank Mandiri's digital transactions through Livin' and Kopra by Mandiri which grew significantly.

It is recorded that Livin' by Mandiri has been downloaded more than 18 million times in the last 12 months.

Through a series of innovations carried out in the past year, said Darmawan, this super complete banking application owned by Bank Mandiri has been able to serve 500 million transactions.

The value of Livin' by Mandiri transactions in the third quarter of 2022 has reached IDR 630 trillion or grew about 50 percent yoy.

As for the Wholesale Digital Super Platform Kopra by Mandiri service, it has managed to manage IDR 13,420 trillion transactions until the third quarter of 2022 or grew 27 percent yoy.

The growth of Kopra by Mandiri users, who are now also present in the mobile app version, has also almost doubled in the past year to 68,000 users.

"The presence of Livin' and Kopra by Mandiri also contributed to the growth of third party funds (DPK), especially significant low-cost funds. This proves that the digital transformation carried out by Bank Mandiri has succeeded in contributing significantly to financial performance with the trend that continues to improve," said Darmawan.

Bank Mandiri's total third-party funds (DPK) grew positively by 12.13 percent YoY from Rp1,213.99 trillion in the third quarter of 2021 to Rp1,361.30 trillion at the end of the third quarter of 2022 which was supported by an increase in savings funds which rose 15.1 percent yoy to Rp533 trillion on a consolidated basis.

Darmawan said that Bank Mandiri's digital transformation was also carried out by digitizing branch offices to optimize services to customers.

Titled Smart Branch, this bank with the gold ribbon logo has transformed 241 branch offices throughout Indonesia.

Through the consistency of business development and digital transformation, Bank Mandiri (BMRI) shares also managed to carve a strengthening of prices to reach a new level of all time or an all-time high to Rp10,375 per share at the close of stock trading. Efek Indonesia, Friday, October 21 and even, was perched at the level of Rp10,450 during the afternoon session.

This position rose 47.68 percent year to date (ytd) compared to the position of closing the stock exchange at the end of 2021 of IDR 7,025 per share.

In the midst of global economic uncertainty, Bank Mandiri consistently maintains asset quality. This is reflected in the bank's only non-performing loan (NPL) position which is sloping to the level of 2.3 percent as of September 2022.

This position is much better than the September 2021 period which had touched 3.1 percent or had decreased by 80 basis points (bps).

In maintaining asset quality, Bank Mandiri has also formed adequate reserves.

As of the third quarter of 2022, Bank Mandiri has prepared sufficient reserves, with the NPL Coverage ratio reaching 292 percent, an increase from the position in the third quarter of the previous year which was 247 percent.

As for the end of September 2022, Bank Mandiri's credit restructuring position has decreased to IDR 45.6 trillion.

This amount is already much lower than September 2021 which had reached IDR 90.1 trillion, or decreased 49.38 percent yoy.

This decline, according to Darmawan, was driven by the repayment and payment of debtor installments, and the businesses of debtors who had returned to normal.

In addition, the role of the Government and regulators in tackling COVID-19 in the country has proven successful and the economy has recovered and even grown stronger compared to the position before the COVID-19 pandemic.

"Thanks to discipline in implementing risk management, Bank Mandiri's cost of credit (CoC), bank only managed to be reduced to 1.3 percent as of September 2022. It is much better than the previous year's period of 2.1 percent," he said.