Mandiri Creates Largest Number of New Capital Market Investors
11/12/14

Jakarta, 12 November 2014 - In collaboration with its subsidiary Mandiri Sekuritas, Bank Mandiri is committed to supporting increased domestic investment in the capital markets through the "National Love the Capital Markets Movement" (GNCPM). In recognition of this commitment, the Indonesia Stock Exchange (BEI) recently presented the Bank with its award for the issuer that has created the most new investors. In all, Bank Mandiri introduced another 1,711 investors to the stock exchange during the period from January to October 2014.

The award was presented by the founder of the Indonesian Museum of Records (MURI), Jayasuprana, to Bank Mandiri CEO Budi G. Sadikin during a ceremony that was witnessed by the Indonesia Stock Exchange CEO Ito Warsito and the chairman of the Financial Services Authority's Board of Commissioners, Muliaman D. Hadad. The event took place at the Istora Senayan in Jakarta on Wednesday (12 Nov).

The GNCPM is designed to raise people's awareness and interest in stock market investing by providing them with a correct understanding of how to invest. The goal is to make investing in the stock market an attractive alternative investment option that can both benefit and be availed of by the entire community.

According to Bank Mandiri Corporate Secretary Rohan Hafas, as a public company, Bank Mandiri wants to play an increased role in supporting the GNCPM, which was conceived by the BEI and is supported by the Financial Services Authority (OJK). "One of the initiatives of the Company is to educate, provide information to and encourage Bank employees to invest in the stock market," said Rohan.

In addition, he said, Bank Mandiri continues to maintain its financial performance in order to provide more added value to its shareholders. The Bank posted a net profit of Rp 14.5 trillion in the third quarter of 2014, up 12.9% from Rp 12.8 trillion a year ago.

As of the end of September 2014, lending had grown 12.4% to Rp. 506.5 trillion, compared to Rp 450.8 trillion at the end of September 2013. As a result, the Bank's assets at the end of September 2014 had grown 14.0% to Rp 798.2 trillion year-on-year.

With the dawning of the ASEAN open market, continued Rohan, Bank Mandiri's business development will be transformed, with the emphasis going ahead being on the integration of the entire potential of the Bank and its subsidiaries. "Through this integration, we believe that Bank Mandiri will be able to continue growing sustainably so as to be able to realize our vision of enhancing the prosperity of the nation and becoming one of the best banks in the region," said Rohan.

Bank Mandiri enjoys a high level of liquidity that helps support the company's organic and non-organic growth plans. This is evident from a loan to deposit ratio (LDR) of 85.31% at the end of September, well below the maximum of 92% set by Bank Indonesia (BI).

By sector, Bank Mandiri's lending to the productive sector grew 14.3% to Rp 389.4 trillion, with growth of 10.8% in investment loans and 16.4% in working capital loans. In the construction sector, lending accelerated by 23.9%, while the manufacturing sector accounted for the largest share of loans - Rp 96.1 trillion -- followed by the Trade, Restaurant and Hotel sector, which absorbed Rp 82.7 trillion.

Meanwhile, Bank Mandiri's third party funds grew by 14.9% to Rp 590.9 trillion during the year to the end of September, up from Rp 514.2 trillion at the end of September 2013. As a result, the Bank's total low-cost funds (checking and savings accounts) as of the end of the third quarter stood at Rp 361.8 trillion, driven primarily by growth in demand deposits of 16.4% (Rp 18.5 trillion) to Rp 131.5 trillion.

"In the midst of increasingly tight competition, both in attracting depositors and borrowers, we managed to maintain a positive expansionary trend. This is in line with our desire to continue to play a role in helping the national economy achieve its optimal rate of growth," Rohan said.

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