Mandiri books 14 percent increase in 2004 profit
Mandiri books 14 percent increase in 2004 profit
The Jakarta Post, Jakarta
Bank Mandiri, the country's largest lender in terms of assets,
booked a 14.6 percent increase in its 2004 net profit, thanks to
its lending expansion.
Publicly listed Mandiri boosted its lending portfolio last
year to Rp 94.4 trillion (about US$1.3 billion), a 24.3 percent
increase from a year before, boosting its net profit to Rp 5.26
trillion.
The increased volume of loans, together with a higher net
interest margin of 4.3 percent compared to 3.3 percent in 2003,
helped boost the bank's net interest income -- revenue from
borrowers minus interest paid to depositors -- to Rp 9.5 trillion
last year.
Mandiri's loan growth also resulted in last year's higher
loan-to-deposit ratio rising to 54 percent from 43 percent in
2003.
The bank also reached its target of reducing corporate loans
to less than 50 percent of its total loans. Corporate loans grew
by only 10.9 percent as against consumer loan growth of 125.9
percent.
Mandiri also reported a capital adequacy ratio of 25.3 percent
and declining nonperforming loans of 7.1 percent. Both figures
are common indicators for measuring a bank's financial health.
Along with efforts to maintain its performance, the bank is
also strengthening its commitment toward fighting bribery by
signing a supervision agreement with a non-governmental
organization.
Mandiri's president director E.C.W. Neloe signed recently a
memorandum of understanding on an integrity pact with the
Transparency International-Indonesia (TII).
Under the pact, the bank and TII will jointly develop sound
mechanisms on supervision, complaints and reports, conflict
resolutions and a reward-and-punishment system, as well as a
witness protection scheme to create a more transparent and
antibribery business environment.
The pact is the first in the country's banking business and is
hoped to trigger similar implementation in the future, Neloe said
in a statement.
TII is a local affiliation of the Berlin-based TI -- an
international organization that focuses on fighting bribery and
corruption.