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