NEWS & RELEASE

Jakarta, 24 April 2018 - Bank Mandiri posted a net profit of Rp 5.9 trillion in the first quarter of 2018 (Q1-2018), up 43.7% year on year (YoY). The improved performance, which came on the back of better productive asset quality and a heightened focus on productive business segments, was primarily driven by higher fee-based income, which was up significantly by 14.7% YoY to Rp 6.0 trillion, while increases in operating costs were maintained at single-digit levels.

Bank Mandiri’s CEO, Mr. Kartika Wirjoatmodjo, said that the company had also successfully boost loan quality, as evidenced by a decrease in the non-performing loan (NPL) ratio from 3.98% in Q1- 2017 to 3.32% in Q2- 2017, thereby reducing the cost of provisioning to Rp 3.8 trillion from Rp 5.4 trillion a year earlier.

“Bank Mandiri also continues to effectively perform its intermediation function through the extending of loans amounting to Rp 703 trillion as of the end of March, up 7.1% YoY, with productive financing accounting for 77.5% of the total bank-only loan portfolio. This excellent performance also boosted the value of the company’s assets to Rp 1,098.2 trillion as of the end Q1 - 2018,” said Kartika.

He said that the increase in productive lending was reflected in the investment loan portfolio, which was up 6.4% YoY to Rp 199.7 trillion, while the working capital loan portfolio rose to Rp 276.5 trillion.

Profit growth by business was dominated by two principal segments: Corporate and Retail, particularly micro and consumer lending. As of the end of March 2018, financing to the large corporate segment stood at Rp 20.9 trillion, up 8.9% YoY, while micro loans grew 22.6% YoY to Rp 85.6 trillion and consumer loans 14.7% YoY to Rp 79.8 trillion.

“As a state-owned bank, we are consistent in our support for the government’s strategic programs that are aimed at accelerating economic growth and promoting equitable development,” Kartika stressed.

He said that a concrete example of such support could be seen from the company's performance in infrastructure lending, where loans amounting to Rp137.2 trillion had been provided, accounting for 59.0% of the company’s total commitment of Rp 232.6 trillion up to the end of March 2018. Infrastructure lending was focused on seven key sectors: transportation (Rp 36.0 trillion), power (Rp 34.5 trillion), oil & gas & renewable energy (Rp 13.6 trillion), construction (Rp 15.2 trillion), tolled expressways (Rp 9.8 trillion), public housing & urban facilities (Rp 9.2 trillion), telematics (Rp8.2 trillion), and miscellaneous infrastructure (Rp 10.7 trillion).

Kartika said that the company’s support for government programs was also evident from its channeling of People's Business Credit (KUR) loans amounting to Rp 3.55 trillion during the first three months of 2018, accounting for some 24.4% of this year’s overall target of Rp 14.56 trillion. A total of 41.9% of that figure, or Rp 1.49 trillion, was channeled for productive uses to the agricultural, plantation and fisheries sectors. From the start of Bank Mandiri’s participation in the KUR program until the end of March 2018, Kartika said, the company has channeled Rp 51.88 trillion in KUR loans to some 1.05 million borrowers throughout Indonesia.

As an agent of development, Kartika said, Bank Mandiri is also actively involved in the delivery of the government’s national social assistance programs. Under the Family Hope Program (PKH), he said, Bank Mandiri has distributed Rp 746.04 billion in social assistance to 1,210,908 beneficiary families throughout Indonesia, while under the Non-Cash Food Assistance (BPNT) program, the company has distributed around Rp 12.27 billion in social assistance payments to some 33,684 beneficiary families. As part of its participation in these programs, the company was assisted by some 106,351 Bank Mandiri branchless banking agents.

Kartika said that Bank Mandiri intends to continuously grow its business going ahead through the strengthening its funding structure by increasing the role of low-cost funds, exercising tight control over operating costs, and applying more prudent lending policies in the Wholesale and Retail Segments.

“In QI-2018, the contribution of low-cost funds grew to Rp 31.5 trillion, equivalent to a YoY increase of 6.8% or a YoY total of Rp 497.18 trillion. This growth came on the back of an increase in savings deposits of Rp 23.4 trillion to Rp 310.9 trillion, and a rise in demand deposits of Rp 8.1 trillion to Rp 186.2 trillion. Meanwhile, we succeeded in reducing our cost of funds to 2.6% from 2.9% as of the end of March last year," Kartika explained.

As part of Bank Mandiri’s efforts to further boost deposits, the company continues to expand its electronic network so as to complement its 4,948 branches. This electronic network includes 17,429 ATMs (including 9,887 Merah Putih ATMs), 245,619 EDC machines, and SMS banking, Mandiri Online, and Call Center 14000 services.

About PT Bank Mandiri (Persero) Tbk

Bank Mandiri is a leading Indonesian bank that provides integrated financial services in the Corporate, Commercial, Micro & Business, Consumer Banking and Treasury segments. The Bank’s subsidiaries are Mandiri Sekuritas (capital market services), Bank Syariah Mandiri (shariah banking), Bank Mandiri Taspen/Mantap (MSME banking services), AXA-Mandiri Financial Services (life insurance), Mandiri InHealth (health insurance), Mandiri Axa General Insurance (general insurance), Mandiri Tunas Finance (consumer finance), Mandiri Utama Finance (financing services), Mandiri International Remittance (remittance services), Mandiri Europe (treasury & financial institutions), and Mandiri Capital Indonesia (venture capital).

As of the end of December 2017, Bank Mandiri had 4,948 office outlets throughout Indonesia, including 2,633 branches and 2,315 micro offices. The Bank’s network also comprised 17,429 ATMs connected to the ATM Link, ATM Bersama, ATM Prima dan Visa/Plus networks, Electronic Data Capture (EDC) machines and an e-banking network consisting of Mandiri Online, SMS Banking, and Call Center 14000.

Detailed information on Bank Mandiri may be accessed at www.bankmandiri.co.id

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