Bank Mandiri First-Quarter Profit Rose on Jump in Loans
By Ben Otto
Bank Mandiri posted a small on-year rise in quarterly profit, with a jump in loans offsetting higher expenses and a drop in non-interest income.
First-quarter net profit at Indonesia's largest bank by assets rose 1.1% compared with the same period a year earlier to 12.702 trillion Indonesian rupiah ($781.2 million), Bank Mandiri said late Tuesday. Compared with the fourth quarter, its bottom line slipped 21%.
Net interest income rose 5.1% on year to IDR24.186 trillion, helped by a 19% rise in loans that outpaced its full-year guidance for 13%-15% growth. Non-interest income fell 1.6% to IDR9.584 trillion, with cash recoveries down both on quarter and on year partly due to high bases, Bank Mandiri said.
The Jakarta-based lender's operating expenses rose 6.8% on year. Provision expenses fell 2.6% on year to IDR3.596 trillion, while the bank's nonperforming loan ratio was 60 basis points lower on year at 1.17%.
Bank Mandiri lowered its full-year net interest margin guidance to 5.0%-5.3% from 5.3%-5.5%, coming after first-quarter NIM fell 33 basis points on year to 5.1%. The bank cited "continuous tight liquidity" in the banking system that led to pressures in cost of funds.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
April 30, 2024 23:09 ET (03:09 GMT)
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