JAKARTA (TheInsiderStories) - The shareholders of state lender, PT Bank Mandiri Tbk (IDX: BMRI), approved the dividend pay out ratio 60 percent of 2020′ net profit or Rp6.16 trillion (US$427.78 million), said the management. Last year, one of the largest bank in the country booked a net profit Rp10.27 trillion.
CEO of the company, Darmawan Junaidi, said in a virtual conference on Monday (03/15), the remaining of profit will be use for business expansion, especially in digital sector. He quite optimistic that Mandiri Digital are able to meet the various needs of corporate and retail customer. The state own company has introduced Livin by Mandiri as a refinement of the Mandiri Online apps and is expected to become a super app that utilizes an artificial intelligence approach.
With these development, he targeting, total loans of Bank Mandiri could grow in the middle single digit range in 2021. Junaidi stated, there are several sectors starting to recover, such as food and beverage, telecommunications, agriculture, and trade. The net interest margin is estimating around 4.6 to 4.8 percent.
To strengthen the capital, the government-owned bank plans to release global bonds around $750 million in this year. Of the total, $300 million will issues as a green bond.
Recently, the Financial Service Authority (FSA) estimated that banking loans to grow around 7.5 percent in this year based on the business plans of the lenders, said the chairman last week. The third party deposit its also expecting to arise by 11 percent in 2021 compared to previous year.
The chairman, Wimboh Santoso, said to support this year targets, the agency has prepared various strategic policies. He also reported, total outstanding loans of the banks was contracted 2.41 percent in 2020 caused of the COVID-19 pandemic.
In 2020, he was revised down the Indonesian bank credit growth from initial targets to grow 11 percent. Even though its slowing down, he is optimistic that bank loanswill gradually improve and start normal again at the beginning of 2021. He was optimistic that bank’ bad loans still be maintained in the range of under 3 percent inline with the implementation of the debt restructuring.
The latest Banking Survey conducted by Bank Indonesia pointed out the declining of new loan growth in the second quarter (2Q) of 2020, with the weighted net balance of demand for new loans deteriorating significantly to minus 33.9 percent compared with 23.7 percent in the previous period and 78.3 percent in the 2Q of 2019.
Respondents confirmed the declining growth of all loan types, especially in investment loans. They predicted looser lending policy in the 3Q of 2020, as indicated by a marked decline in the Lending Standard Index to 3.9 percent from 34.4 percent in the previous period.
The banks expected to ease lending standards on all loan types through credit lines, collateral requirements and loan maturity. The latest survey also indicated slower credit growth in 2020. Respondents predicted credit growth in 2020 at 2.5 percent in annual basis, lower than credit realization in 2019 at 6.1 percent.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
