JAKARTA (TheInsiderStories) – One of the largest bank in Indonesia, PT Bank Mandiri Tbk (IDX: BMRI) plans to acquire a medium-scale bank with a focus on small and medium enterprises (SMEs), said the chief executive yesterday (01/28).
Stated by the CEO Kartika Wirjoatmodjo, the state-owned bank has strengthened to channel loans to the corporate sector and SOEs but not for the micro lending. He added, “We are looking mainly for strong ones in SME, because we are more into corporations and SOEs.”
In term of size, said Wirjoatmodjo, the targeted bank is a medium-scale bank. Regarding the investment funds, he explained, the lender has excess funds of three percent of total liquidity or around Rp30 trillion (US$2.12 billion).
In addition, in the first semester of this year, Bank Mandiri plans to issue a global medium term notes (MTN) worth up to $1 billion. The new notes aimed to replace the global MTN that is due this semester.
With the global issuance of MTN and instruments in rupiah, the company hopes to support the loan to funding ratio targeted at 91-92 percent this year. As for credit growth, the company targets a figure of 11-12 percent, with targeted earnings growing in double digits.
In 2018, Bank Mandiri recorded a net profit of Rp 25 trillion, or grew 21.2 percent compared to previous year (YoY). The bank also carried out the intermediation function well with total lending of Rp820.1 trillion, up 12.4 percent from the previous year.
From that achievement, Bank Mandiri’ productive financing was recorded at IDR 558.7 trillion or 77.71 percent of the portfolio. This performance also resulted in an increase in the value of the company’s consolidated assets to Rp1,202.3 trillion at the end of last year.
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