ENP Newswire - 28 July 2014
Release date- 24072014 - Bank Mandiri posted a net profit of Rp 9.6 trillion in the second quarter of 2014, up 15.6% from Rp 8.3 trillion during the same period last year.
Profit growth was driven primarily by an increase in net interest income of 17.6% to Rp 19.4 trillion and an 11.5% expansion in fee-based income to Rp 7.3 trillion.
As of the end of June 2014, lending was up 13.3% to Rp 485.8 trillion compared to June 2013, when the figure was Rp 428.7 trillion. As a result, Bank Mandiri's assets were 13.8% higher year-on-year at Rp 764.9 trillion as per the end of the second quarter.
Bank Mandiri CEO Budi G. Sadikin said that Bank Mandiri consistently encouraged business growth by focusing on three key areas - wholesale transactions, retail payments and deposits, and retail financing. 'Through these three pillars, we believe the bank will be able to continue growing so as to realize our vision of helping develop Indonesia and being one of the largest banks in the region,' Budi said.
Budi said that Bank Mandiri benefitted from healthy liquidity, which helped to support the achievement of the Company's business development plans, both organic and non-organic. This, he said, could be seen from Bank Mandiri's loan to deposit ratio (LDR), which stood at 86.97% at the end of June, comfortably below the upper limit of 92% set by Bank Indonesia (BI).
By sector, Bank Mandiri's lending to the productive sector grew 14.7% to Rp 370.1 trillion, with investment loans increasing by 11.4% and working capital loans by 16.7%. Lending to the construction sector recorded growth of 28.9%, while the manufacturing sector accounted for the largest volume of loans at Rp 91.9 trillion, followed by the Trade, Restaurants and Hotel sector on Rp 83.6 trillion.
Meanwhile, third party funds grew 10.7% to Rp 555.9 trillion as per the end of June, up from Rp 502.4 trillion in June last year. Total low-cost funds (checking and savings) deposited with Bank Mandiri up to the end of the second quarter amounted to Rp 345.6 trillion, primarily driven by growth in savings of 9.5% (Rp 19.6 trillion) to Rp 226.1 trillion.
'In the midst of increasingly tight competition, both as regards attracting funds and lending, we have successfully maintained Bank Mandiri's business expansion. This is in line with our commitment to playing an optimal role in national economic growth,' Budi said.
As part of Bank Mandiri's efforts to attract more customer deposits by providing greater transaction convenience, Bank Mandiri has continued to develop its branch, electronic and other networks. During the period from June 2013 to the end of June this year, the bank opened 252 new domestic branches so as to bring the total to 2,087, increased the number of ATMs to 11,604, increased the number of electronic data capture machines (EDCs or swipe machines) to 250,043 units, and added 79 new micro-business outlets (micro units and micro kiosks) to bring the total to 1,811.
Bank Mandiri plans to operate 824 branches on a rotating basis over the Idul Fitri holidays on July 26, 27, 29, 30 and 31, and on 1 August. These offices will provide limited transaction services, including accepting fuel and other deposits. All domestic Bank Mandiri branches will be closed on 28 July.
'To ensure the availability of cash, we have also set aside Rp 33.97 trillion, or an average of Rp 1.17 trillion per day, up 22.2% from last year. Some 40% of the total amount has been allocated to Greater Jakarta, while the other 60% will be distributed to major cities outside Greater Jakarta, such as Medan, Semarang, Surabaya and Bandung,' Budi explained.
For replenishing ATMs, Bank Mandiri has allocated Rp 1.7-1.9 trillion per day, about 25% more than on normal days. The distribution of funds will be focused on the two weeks before Lebaran and during the Lebaran holiday.