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This year, Mandiri is targeting a net profit of IDR24 trillion

State-owned lender Bank Mandiri is targeting between Rp 22 trillion (US$1.45 billion) and Rp 24 trillion in net profit this year amid rupiah exchange rate fluctuations.

Bank Mandiri finance director Panji Irawan said the 20 percent growth in net profit to Rp 18.1 trillion up to the third quarter of 2018 had sparked optimism that the lender’s net profit would exceed the initial target of Rp 23 trillion.

“We really believe that we can achieve Rp 24 trillion in net profit,” said Panji at Plaza Mandiri, Jakarta, on Wednesday as reported by kompas.com.

He explained that the third quarter profit growth had been triggered by a number of factors – 4.2 percent growth in net interest income  to Rp 40.5 trillion, 11.4 percent growth in fee-based income to Rp 18.7 trillion and a 0.3 percent decline in reserve costs.

“Bank Mandiri has also been consistent in introducing various initiatives and efficiency to press operational costs to only one digit,” Panji said.

Meanwhile, up to the end of 2017, Bank Mandiri had aimed for credit disbursement growth of between 11 and 13 percent, while as of the third quarter of 2018, credit disbursement had grown 13.8 percent, the highest growth in the last 18 months.

“It brings us to believe that loan growth is in accordance with what we have planned,” he added. (bbn)

The Jakarta Post

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