Mandiri expects profit up 35 percent

Mandiri expects profit up 35 percent

Publicly-listed Bank Mandiri expects that its first-half net profit rose about 35 percent on year due an increase in new lending.

"We expect first-half net profit to hit Rp 3 trillion (US$324 million)," Bank Mandiri's president director Edwin Neloe told reporters late Thursday.

The nation's largest bank in terms of assets posted a net profit of Rp 2.23 trillion in the first six months of 2003.

He said the bank's new lending during the period is expected to amount to Rp 1.7 trillion, bringing its outstanding loans to Rp 77.6 trillion at end-June.

He didn't give further details, but said that Bank Mandiri will announce its first half earnings later this month.

The bank has expanded lending more aggressively than other institutions, many of which remain concerned about corporate defaults, analysts said.

The government, which currently holds a 70 percent stake in the bank, said it may delay the sale of a 10 percent stake in Bank Mandiri until next year due to the current poor conditions in financial markets. -- Dow Jones