Bank Mandiri Posts 37.1% Growth in Profit

DEPOK (eNBe Indonesia) - State-owned Bank Mandiri (BMRI) booked profit after tax of Rp19.23 trillion in the first nine months (9M) to September of 2021, grew 37.1% year on year (y/y) as net interest income rose 26.5% y/y to Rp53.3 trillion and non-interest income increased 21.5% y/y to Rp23.79 trillion.

Provision expenses only increased 4.7% y/y to Rp16.44 trillion, then profit from operation grew 44/5% y/y to Rp27.39 trillion.

In the third quarter (Q3) of 2021, Bank Mandiri booked a net profit of Rp7.73 trillion, which jumped 80.1% y/y, but it only grew 2.2% from the previous quarter (Q2).

Net interest income only increased 2.8% quarter on quarter (q/q) to Rp18.16 trillion in Q3, but it grew 37.3% y/y.

Non-interest income declined 5.8% q/q to Rp7.85 trillion, and it grew 30.9% y/y. Operating profit increased 0.9% q/q to Rp9.29 trillion, and it jumped 85.4% y/y.

Bank Mandiri’s loan disbursement grew 16.93% y/y to Rp1,021.63 trillion in the first 9M of 2021. It grew 0.72% q/q and 14.43% year to date (ytd).

Total assets grew 16.44% y/y to Rp1,637.95 trillion. Third-party funds increased 18.53% y/y to Rp1,213.98 trillion.

Bank Mandiri’s capital adequacy ratio (CAR) stood at 19.34% by the end of September 2021, compared to 19.52% by the end of September 2020.

NPL was 2.96%, improved from 3.33% by the end of September 2020. Net interest margin (NIM) increased to 5.03% from 4.68% in the previous year. BMRI’s loan to deposit ratio declined to 83.64% from 84.44%.

Bank Mandiri sets NIM at 4.8% to 5.1% for this year. Loan growth is currently at the upper range of its FY/21 guidance but may soften in the rest of this year due to PPKM. However, that is expected, and its target for end-of-year is safe.

For this year, Bank Mandiri expects a single-digit growth for a gross loan, and net interest margins (NIM) are projected at 4.6% to 4.8%.

The cost of credit is set at 1.9% to 2.4%. The Bank will focus on recovering NIM and asset quality, strong control in OPEX spending, selective loan growth recovery in the wholesale and retail value chain, and accelerating digital transformation.

Bank Mandiri also restructured loans due to the impact of the COVID-19 pandemic reaching Rp90.1 trillion in the first 9M of 2021.