Bank Mandiri posts net profit of Rp4.1 trillion in Q1
In this article (5)
State lender Bank Mandiri posted a net profit of Rp4.1 trillion in the first quarter of 2017, up 6.9 percent from Rp3.8 trillion in the same period last year.
One of the factors increasing the profit was the rise in the amount of financing as reflected by credit growth, which rose 14.2 percent to Rp656.2 trillion in the first quarter of 2017, with the gross non-performing loan (NPL) ratio reaching 3.98 percent, Bank Mandiri President Director Kartika Wirjoatmodjo said here on Tuesday.
“Although the gross NPL ratio rose 80 points year-on-year, its value was relatively good compared to Dec 2016,” he stated.
In addition, the net profit hike was also fueled by net interest income and net premiums, which rose by 3 percent to Rp13.4 trillion, and fee-based income, which went up by 25 percent to Rp13.4 trillion.
He added that the bank also managed to cut operating costs by 3.8 percent to Rp7.9 trillion, while operating profit before tax and reserves increased 11.9 percent to Rp10.8 trillion compared to March 2016.
The banks total assets reached Rp1,034.4 trillion as of the first quarter of 2017, up 14.1 percent compared to the same period last year.
Questions & Answers
Q.What was the total value of Bank Mandiri's assets at the end of the first quarter of 2017?
What was the total value of Bank Mandiri's assets at the end of the first quarter of 2017?
Bank Mandiri's total assets reached Rp1,034.4 trillion as of the first quarter of 2017. This figure represents a 14.1 percent increase compared to the same period in the previous year, demonstrating significant growth.
Q.How did the bank's non-performing loan ratio change compared to the previous year?
How did the bank's non-performing loan ratio change compared to the previous year?
The gross non-performing loan (NPL) ratio rose by 80 points year-on-year, reaching 3.98 percent in the first quarter of 2017. Despite this increase, it was considered relatively good when compared to December 2016 figures.
Q.Which specific income streams contributed to the increase in net profit for Bank Mandiri?
Which specific income streams contributed to the increase in net profit for Bank Mandiri?
The net profit hike was fuelled by a 3 percent rise in net interest income and net premiums, totalling Rp13.4 trillion. Also, fee-based income also increased significantly by 25 percent, also reaching Rp13.4 trillion.
Q.By how much did Bank Mandiri manage to cut its operating costs in the first quarter of 2017?
By how much did Bank Mandiri manage to cut its operating costs in the first quarter of 2017?
Bank Mandiri successfully cut its operating costs by 3.8 percent in the first quarter of 2017. This reduction brought the total operating costs down to Rp7.9 trillion, contributing to the bank's overall financial performance.
Reader pulse
Is Bank Mandiri's Q1 profit sustainable?
23,197 votes so far