The growth resulted from a 18.1 percent increase in fee based income and a 15.4 percent decline in allowance for impairment loss (CKPN), the bank`s director of small businesses and bank networks, Hery Gunardi said in a press conference here on Thursday.
The increase in net profit suggested that the efforts to channel credits and curb non-performing loans (NPLs) have improved, he said.
"The decline in CKPN reflects Bank Mandiri`s progress in lowering NPLs, collecting (debts) and restructuring credits," he said.
The other way to increase the profit growth is encouraging efficiency in various sectors, he said.
"We also have made efficiency including reducing the number of new branches as we are focusing on improving the productivity of (the existing) branches and lowering operating expenses," he said.
The bank extended Rp762.5 trillion in credits in the first half of 2018, up 11.8 percent from Rp682 trillion in the same period last year.
The credit growth is almost the same as the bank`s average credit growth of 11.9 percent in the past five years.
The amount of credits extended to the corporate segment increased 22.2 percent to Rp296.8 trillion and to the micro segment rose 24.8 percent to Rp90.6 trillion.
With the ratio of NPLs improving to 3.13 percent in the first half of 2018 from 3.82 percent in the same period last year, the bank was able to slash its allocations for reserves to Rp7.9 trillion from Rp9.3 trillion,
Reported by Satyagraha
(T.SYS/B/S012/C/S012)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
