Bank Mandiri is Optimistic That Growth Will Continue Until the End of 2023

Bank Mandiri (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri Tbk (BMRI) recorded positive financial performance in the third quarter of 2023 in line with Indonesia's still solid economic conditions. Apart from that, this is reflected in the total consolidated assets which reached IDR 2,007 trillion as of September 2023 or grew 9.11 percent compared to the same period the previous year or year on year (yoy).

Bank Mandiri Director of Finance and Strategy Sigit Prastowo said that the increase in total assets was also driven by the growth rate of credit and third-party funds (DPK) which were able to grow positively.

It was recorded that Bank Mandiri succeeded in disbursing credit on a consolidated basis amounting to IDR 1,315.92 trillion in September 2023 from the previous year's position of IDR 1,167.51 trillion or growing 12.71 percent (yoy).

"In encouraging business growth, Bank Mandiri continues to focus on improving services by providing financial solutions that suit the needs of the community and customers. "Especially by encouraging prospective sectors in each region," said Sigit in Public Expose Live 2023 on Monday 27 November.

Sigit said that if detailed, Bank Mandiri credit recorded positive growth in all segments. Especially from credit distribution in the commercial segment which increased significantly by 18.55 percent (yoy) to IDR 222.3 trillion at the end of the third quarter of 2023 and credit in the SME (Small Medium Enterprise) segment which reached IDR 74.16 trillion or an increase of 11.73 percent from the same period last year.

In line with the growth of these two segments, Bank Mandiri's credit in the micro segment also recorded positive realization with growth reaching 10.09 percent (yoy) to IDR 161.4 trillion at the end of September 2023 compared to September 2022 of IDR 146.6 trillion.

Apart from that, people's purchasing power which is still solid also supports the growth of Bank Mandiri's consumer credit which reached 12.04 percent (yoy) to IDR 109.3 trillion in the third quarter of 2023.

Meanwhile, Bank Mandiri corporate credit remains the largest contributor to the company's credit portfolio, with realization reaching IDR 449 trillion and growing 9.55 percent (yoy). This credit growth is in line with the company's increasingly solid financial performance. This is reflected in Bank Mandiri's consolidated net profit rising 27.4 percent (yoy) to IDR 39.1 trillion until September 2023.

Sigit said that the profit growth was the result of Bank Mandiri's strategy which focuses on the ecosystem both in terms of financing and funding.

"We are optimistic that we can continue this good performance, so that by the end of 2023 our credit growth will be in the upper range of our guidance of 10 percent-12 percent. "This growth is evenly distributed, both in the wholesale and retail segments," explained Sigit.

Sigit said that in carrying out credit expansion, his party will always apply the principle of prudence by directing its credit growth to sectors that are classified as prospective or risky in accordance with the Loan Portfolio Guideline (LPG) which is reviewed periodically.

Meanwhile, in terms of total third-party funds (DPK), on a consolidated basis, Bank Mandiri was able to record positive growth of 6.6 percent (yoy) from IDR 1,361.3 trillion in September 2022 to IDR 1,451.7 trillion at the end of September 2023 which was supported by cheap funds or current account and savings account (CASA).

"Bank Mandiri's total low-cost funds, namely Savings and Current Accounts, managed to reach IDR 1,070 trillion, an increase of 12.8 percent (yoy)," he said.

Sigit added that Bank Mandiri's cheap funds ratio or CASA Ratio increased to 73.73 percent on a consolidated basis and 78.8 percent on a bank-only basis in September 2023. This figure is compared to the same period the previous year which was 69.73 percent respectively. on a consolidated basis and 73.2 percent on a bank-only basis.