Bank Mandiri Records Rp 14.5 Trillion Profit in Q3
10/23/14

Jakarta, 23 October 2014 - Bank Mandiri posted a net profit of Rp 14.5 trillion in the third quarter of 2014, up 12.9% from Rp 12.8 trillion in Q3/2013. Profit growth was driven primarily by a 26.5% increase in interest income.

As of the end of September 2014, lending was up 12.4% to Rp 506.5 trillion, compared to Rp 450.8 trillion at the end of September last year. As a result, Bank Mandiri's assets rose 14% to Rp798.2 trillion year on year.

Bank Mandiri CEO Budi G. Sadikin said that as the ASEAN common market approached, Bank Mandiri would develop its business by emphasizing the comprehensive integration of the Bank's and its subsidiaries' businesses. "Through this integration process, we believe that Bank Mandiri will be able to continue growing sustainability so as to realize our vision of promoting prosperity in Indonesia and being one of the best banks in the Southeast Asia region," Budi said.

Budi said that Bank Mandiri continued to benefit from strong liquidity, which supported the realization of the company's business development plans, both organic and non-organic. He said that this could be seen from the Bank's loan to deposit ratio (LDR) of 85.31% at the end of September, well below the upper threshold of 92% permitted by the central bank, Bank Indonesia.
During the first nine months, Bank Mandiri's lending to the productive sector grew 14.3% to Rp 389.4 trillion, with investment loans up 10.8% and working capital loans 16.4%. Lending to the construction sector increased by 23.9%. The manufacturing sector accounted for the lion's share of the Bank's lending at Rp 96.1 trillion, followed by the trade, restaurant and hospitality sector on Rp 82.7 trillion.

Meanwhile, Bank Mandiri's third party funds grew by 14.9% to stand at Rp 590.9 trillion at the end of Q3, up from Rp 514.2 trillion at the end of September 2013. As a result, total low-cost funds (checking and savings accounts) managed by Bank Mandiri at the end of Q3 stood at Rp 361.8 trillion, driven primarily by growth in demand deposits of 16.4% (or Rp 18.5 trillion) to Rp 131.5 trillion.

"In the midst of increasingly tight competition, both in terms of attracting deposits and lending, Bank Mandiri successfully maintained its expansionary trajectory. This is in line with our determination to continue playing a key role in encouraging optimal growth in the national economy," Budi said.

As part of Bank Mandiri's commitment to providing greater transaction convenience to customers, the Bank continues to develop its branch, electronic, and other service networks. Between September 2013 and September 2014, Bank Mandiri opened 245 new branches around the country to bring the total to 2,154, and increased its total number of ATMs to 13,309 and the number of electronic data capture (EDC) or swipe machines to 262,855. In addition, Bank Mandiri opened another 82 micro-business outlets (micro units and micro kiosks) to bring the total to 1,862 units.

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