State-owned lender Bank Mandiri posted a net consolidated profit of 12.5 trillion Indonesian rupiahs in the first half of 2021, up 21.45 percent from Rp10.29 trillion recorded in the corresponding period of last year.
“In the second quarter of 2021, (our) business and profitability growth showed improving performance,” Bank Mandiri president director Darmawan Junaidi informed at a press conference in Jakarta on Thursday.
He said the bank’s net profit grew by 21.45 percent, fueled by net interest income, which rose 21.5 percent (yoy) to touch Rp35.16 trillion.
Meanwhile, the bank’s fee-based income swelled by 17.27 percent (yoy) to reach Rp15.94 trillion, he added.
As of the second quarter of 2021, third party fund placement rose 19.73 percent (yoy) to touch Rp1,169.2 trillion, out of which 68.49 percent, or Rp800.8 trillion, constituted low-cost funds, Junaidi said.
The growth of low-cost funds was particularly fueled by a 40.9-percent growth in giro or bank transfers in the second quarter of 2021, he added.
Darmawan said the manageable trend in low-cost funds helped cut the cost of funds (CoF), on a year-to-date basis, to 1.17 percent from 2.53 percent at the end of last year.
The bank also recorded consolidated credit growth of 16.4 percent (yoy) at Rp1,014.3 trillion, driven by the wholesale banking segment, which grew 7.13 percent (yoy) to reach Rp534.2 trillion, at the end of the second quarter of 2021, he said.
The increase in third party fund placements and credit in the first half of 2021 contributed to the 16.26-percent (yoy) growth of consolidated assets to Rp1,580.5 trillion from Rp1,359.4 trillion, he added.