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Mandiri Beats Lending Target Due to Economy’s Big Year
Francezka Nangoy | February 06, 2012

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Bank Mandiri, the country’s largest lender by assets, has said its lending grew by almost 30 percent last year.

Pahala Mansury, Mandiri’s chief financial officer, said on Monday that rising lending growth should translate into a “good net income report.”

Lending at Mandiri rose 28 percent last year, surpassing the industry’s overall rate of around 24 percent. “I think our income will be good, in line with our expectations,” Pahala said.

The economy grew 6.5 percent last year, its biggest expansion since the 1997-98 Asian financial crisis, helping to drive lending.

Mandiri’s outstanding loans stood at Rp 246.2 trillion ($27.6 million) in 2010. The growth rate would imply that outstanding loans rose to Rp 315.14 trillion last year, according to calculations by the Jakarta Globe. Pahala would not confirm the number.

The bank’s net income may have risen by 29 percent to Rp 11.9 trillion last year from Rp 9.22 trillion in 2010, Bisnis Indonesia reported on Monday, citing an unidentified source.

Pahala would not confirm the reported increase.

“Its currently being audited. We will announce it by the fourth week of February or the first week next month,” he said.

Bank Mandiri shares fell 2.3 percent to close at Rp 6,400 in Monday’s trading.

The central bank’s governor, Darmin Nasution, said in December that he expected lending at the nation’s 120 commercial banks to rise 27 percent this year.

A local brokerage firm, Trimegah Sekuritas, said in November that loan growth would ease to 19 percent in 2012 as the global slowdown curbed the country’s economic expansion.