Bank Mandiri In The News - Rabu, 3 April, 2002

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Djaman Sumadidjaja
Group Head, Office of Corporate Secretary
Bank Mandiri
Tel: (021) 524 3486
Fax: (021) 526 8246
Jeffrey Schultz/Sahala Sianipar
Golin/Harris Forrest
Tel: (65) 6235 3121
Fax: (65) 6836 3121

Bank Mandiri 2001 Profit Rp 3.85 trillion, up 90.3%

Jakarta, 3 April 2002 – Bank Mandiri today reported an audited profit before tax of Rp 3.85 trillion (US$ 370.2 million) for the fiscal year of 2001, up 90.3 % compared with the fiscal year 2000. Total assets were Rp 262.3 trillion (Rp 253.3 trillion in 2000), and capital adequacy ratio was 26.44% (31.29% in 2000), significantly higher than the 8% minimum requirement by the Central Bank of Indonesia.

“Our efforts to restructure and transform the bank since the merger in 1999 is starting to deliver better results. Importantly, we will continue to enhance our operating platform and culture to enable us to compete successfully and grow in a sound and prudent manner,” said Bank Mandiri President Director and Chief Executive Officer, E.C.W. Neloe. Return on assets was 1.52% (0.83% in 2000), whilst return on equity was 25.81% (9.70% in 2000).

Loans outstanding at the end of 2001 stood at Rp 48.2 trillion (Rp 43.0 trillion in 2000). “We have made progress in building our loan portfolio. Our loans to consumers and small businesses grew Rp 2.2 trillion as of December 31, 2001 compared to Rp 0.9 trillion in 2000,” said Mr. Neloe.

“We also continued to actively manage the quality of our loans portfolio through restructuring, recovery actions and write-offs,” added Mr. Neloe. The level of non-performing loans was reduced from 19.80% in 2000 to 9.78% in 2001. In 2001, the bank’s available earning assets provision to required ratio by the Central Bank was 132.53%.

“Another key achievement in 2001 was in the area of consumer banking. We made significant progress in our efforts to build our consumer banking franchise. We have originated more than 125,000 new credit cards since we launched Mandiri Visa a year ago with GE Capital. We launched the Mandiri Priority Banking program and opened two new priority banking centers. We also expanded our distribution network of branches, cash outlets and ATMs,” added Mr. Neloe. In 2001, Bank Mandiri added 651 ATMs and 89 branches and cash outlets.

Neloe added, “One of the key functions of banking is collection of customer deposits. At Bank Mandiri, we grew our deposit base by Rp27.07 trillion to Rp190.45 trillion as of December 31,2001. This contributed to improve our customer mix”. As of 31 December 2001, retail and corporate customers accounted for 54% and 46% of total deposits, respectively, compared to 44% and 56% proportion in 2000.

Bank Mandiri ranked among top ten companies in Indonesia, in terms of management, shareholder value and financial management, according to a recent survey conducted by FinanceAsia in 2001. The survey polled 331 institutional investor and equity analysts in the Asia Pacific region.

About Bank Mandiri (all figures as of 31 December 2001)
Bank Mandiri is Indonesia’s largest bank in terms of assets, loans and deposits. Bank Mandiri was established in October 1998 through the merger of four state-owned banks. It employs 17,204 people across Indonesia and has 635 branches, including five overseas branches/subsidiaries. The bank’s distribution is further enhanced by its 1,184 ATMs, which are supplemented by 3,000 additional ATMs made available to Bank Mandiri customers via a state bank common ATM network.

This announcement is not, and is not intended to be, an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. There is not, and is not intended to be, a public offering of the bank’s securities in the United States.