Mandiri is optimistic despite incurring huge bad loans

Mandiri still managed to enjoy 0.29 percent increase in NPL ratio despite having $313-million non-performing loans.

Bank Mandiri claims its outlook is positive despite more than Rp 3 trillion (US$313 million) in non-performing loans (NPLs), as reported in Jakarta Post.

The bank reported its net NPL ratio as of September increased to 0.85 percent from last year's 0.56 percent. The September ratio however, was better than in the first half of the year, which had reached 1.09 percent.

Mandiri's director for special asset management, Abdul Rahman, said Sunday that the debts did not prevent healthy profit growth.

The bank's January-September net profits reached Rp 4.62 trillion ($482 million), 16.8 percent higher than the Rp 3.95 trillion ($413.4 million) gained in the same period last year.

Mandiri president director Agus Martowardojo said that the bank would prefer restructuring big debts rather than bringing them to the courts.
 

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