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Bank Mandiri reports highest ever annual net profit

Jakarta Globe - January 31, 2024

Jakarta – Bank Mandiri announced on Wednesday that it had achieved a record-high net profit of Rp 55.1 trillion ($3.5 billion) in 2023, reflecting robust growth of 33.7 percent year-on-year, driven by the positive outcomes of its digitalization initiatives.

The state-owned bank disbursed Rp 1,398.1 trillion in credit last year, marking a notable 16.3 percent increase compared to the credit disbursement in the previous year.

Bank Mandiri's digital app, Livin', has garnered 37 million downloads since its launch in October 2021. The super app facilitated over 2.8 billion transactions, totaling Rp 3,271 trillion in 2023, showcasing a significant 32.32 percent increase from the previous year.

In addition to Livin', the bank introduced a digital wholesale platform named Kopra, overseeing transactions worth Rp 19.1 trillion involving small and large enterprises.

"We continue to enhance the performance and effectiveness of Livin' and Kopra apps as an integrated solution for our customers' financial and non-financial needs. These apps are now accessible from foreign countries, allowing our customers to manage their transactions anywhere, anytime," Bank Mandiri CEO Darmawan Junaidi said in a news conference in Jakarta.

As of December 31, the bank's assets were valued at Rp 2,174.2 trillion, marking a 9.12 percent increase from the total assets of Rp 1,992.5 trillion in the preceding year.

Bank Mandiri also reported a noteworthy reduction in its non-performing loan ratio to total assets, down by 86 percentage points to 1.02 percent.

"Our financial performance has gained momentum and remained on track, supported by strict adherence to prudential banking regulations, resulting in an improvement in the quality of our assets. We are confident that 2024 has room for growth," Darmawan said.

The strong performance of Bank Mandiri in 2023 is also evident in its stock performance at the Indonesia Stock Exchange, witnessing a 21.9 percent surge throughout the year.

The bank's "green portfolio," which focuses on credits for sustainable businesses, recorded a significant 21.4 percent year-on-year rise, reaching Rp 129 trillion.

Darmawan elaborated, "The financing in this particular sector is directed at sustainable businesses such as renewable energies, hydro and geothermal power plants, and the EV ecosystem."

Source: https://jakartaglobe.id/business/bank-mandiri-reports-highest-ever-annual-net-profi