Bank Mandiri Prints Profit Of IDR 12.6 Trillion In The First Quarter Of 2023

Photo: Doc. Bank Mandiri

JAKARTA PT Bank Mandiri Tbk. successfully scored a consolidated net profit in the first quarter of 2023 reaching IDR 12.6 trillion.

Bank Mandiri President Director Darmawan Junaidi said the result grew 25.2 percent compared to the same period last year.

This profit growth is the result of Bank Mandiri's strategy which focuses on the business ecosystem approach both in terms of financing and funding. As a result, Bank Mandiri's total assets on a consolidated basis until the end of March 2023 managed to grow 10.04 percent year on year (yoy) to reach Rp1,908 trillion," he said in a written statement on Tuesday, April 18.

According to Darmawan, the slick score was supported by credit growth reaching 12.36 percent to Rp1,205 trillion which could not be separated from the improving fundamentals 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," he said.

Darmawan explained that the intermediation function was spread, including wholesale loans which managed to increase 9.09 percent to Rp599 trillion and retail loans which increased 11.92 percent with the realization reaching Rp327 trillion.

"In encouraging Bank Mandiri's credit disbursement, it still prioritizes the principle of prudence and service innovation for all customers and stakeholders to achieve sustainable business growth," he said.

This effort also bore fruit, as seen from the bank's only non-performing loan (NPL) ratio which was maintained to the level of 1.70 percent as of March 2023, down from 2.74 percent in the same period in the previous year.

In addition, Bank Mandiri has also formed sufficient reserves, as reflected in the coverage ratio which is at the level of 337 percent on a bank only basis.

Then, the cost of credit or cost of credit is at its lowest level in history, which is 1.00 percent as of the end of March 2023 on a bank only basis, improving from the position a year earlier which had touched the level of 1.45 percent.

Then, Bank Mandiri's positive performance can also be seen in terms of profitability which continues to increase. Return on Equity (ROE) Tier-1 bank only has touched 24.6 percent or an increase of 241 basis points (bps) year on year. Meanwhile, the consolidated net interest margin (NIM) position is solidly maintained at the level of 5.40 percent.

"In encouraging credit disbursement, 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 amid global uncertainty," concluded Darmawan.