Bank Mandiri profit up 30.6%

Zakki Hakim The Jakarta Post Jakarta

Indonesia's giant Bank Mandiri announced on Friday a 30.6 percent increase in its net profit to Rp 3.59 trillion (US$400.7 million) in 2002 from Rp 2.75 trillion in the previous year, thanks to among others a Rp 1.1 trillion loan write-back.

The company last year booked operating income of Rp 10.5 trillion (including a net interest income of Rp 6.87 trillion and a non-interest income of Rp 3.63 trillion), up from Rp 8.57 trillion in 2001 (including net interest income of Rp 7.11 trillion, a non-interest income of Rp 1.46 trillion).

Meanwhile, the bank's total operating expenses last year were Rp 4.99 trillion (including a total overhead expenses of Rp 3.63 trillion), up from Rp 4.47 in the previous year (Rp 3.42 trillion).

Its total loans increased by Rp 17.1 trillion or 35.3 percent to Rp 65.4 trillion, raising its loan to deposit ratio to 35.4 percent from 25.3 percent.

The funds collected from third parties decreased to Rp 184.11 trillion from Rp 190.45 trillion, while its loans increased to Rp 65.42 trillion from Rp 48.34 trillion.

The quality of loans, nonetheless, improved because non- performing loan (NPL) fell down from 9.7 percent in 2001 to 7.3 percent last year, while the net NPL dropped from 3.1 percent to 1.9 percent.

At the end of 2002, Bank Mandiri's capital adequacy ratio (CAR) was recorded at 23.4 percent, down from the previous year's 26.4 percent.

Total government bonds as of December 2002 was Rp 148.85 trillion, decreasing from Rp 153.49 trillion.