Bank Mandiri sets credit growth target at 11.5 percent in 2019

Bank Mandiri sets credit growth target at 11.5 percent in 2019

Bank Mandiri (ANTARA)

Jakarta, (ANTARA News) - Publicly listed state-owned lender PT Bank Mandiri has set its target for credit growth at 11.5 percent in 2019, lower than its 2018`s target of 13 percent.

"Loans next year is expected to grow only 11.5 percent . This year it is 13 percent," Finance Director of Bank Mandiri Panji Irawan said here on Wednesday.

The bank sets target for third fund growth at 10.63 percent , up from this year`s estimate of 5.58 percent.

? ?Panji said the banking industry is expected to grow to follow the improving condition of the country economy.

"This is reflected in the credit growth and improved profitability and stable quality of assets," he said.

Until September 2018, Indonesian bank credits grew 12.1 percent year on year or the highest in four years.

Large banks (Bank Mandiri, BRI, BCA, and BNI) recorded a strong growth in net profit, with an average growth of 14.3 percent. the non performing loans of banks also improved declining in the past four months - from 2.79 percent in May, 2018 to 2.66 percent in September 2018.?

? ?However, Indonesia`s banking industry is still confronted with big challenges, including rising trend of benchmark interest rate, tighter liquidity, and rupiah volatility.?

? "Ahead we are optimistic with the performance of our economy and banking industry. Our optimism is based on expected improvement of our economic condition and political stability," Pandji said.

He said to follow the general trend in banking industry, Bank Mandiri has continued to post improvement in its performance. The bank`s consolidated outstanding credit grew 13.8 percent year-on-year to Rp781.1 trillion. The highest growth was recorded for big corporation credits which rose 28.7 percent yoy and micro credits growing 27.1 percent yoy.?

? ? The credit expansion was followed with improvement in asset quality with non performing loan brought down to 3.01 percent or down 74 bps from the same period last year.

Meanwhile, consolidated third party fund grew 9.2 percent yoy to Rp831.2 trillion with cheap funds making up 64.5 percent

of total third party fund. ?

? ? The bank`s net interest income grew 4.2 percent yoy to Rp40.5 trillion, and non-interest income grew 11.4 percent yoy to Rp18.8 trillion, contributed mainly by business in forex treasury, cash recovery, and settlement of tax problem. ?

With tight cost control, the operating cost of Bank Mandiri has been well handled that it grew only 6 percent yoy. Finally, the net profit of Bank Mandiri could grow 20 percent yoy to Rp18.1 trillion thanks mainly to high increase in operating profit before reserve and lower credit cost.?

"Ahead we are very optimistic the performance of Bank Mandiri would continue to improve with stable growth of the economy and improved performance of the banking industry in general," Panji said. Reporting by Citro Atmoko (AS/S012).

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