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Cost of fund got lessened, Bank Mandiri’s NIM grew in Q1 2021

28 April 2021 10:42

JAKARTA. PT Bank Mandiri Tbk’s (BMRI) efforts to reduce its cost of fund allowed the net interest margin (NIM) to climb up to 5.1% from January to March 2021.

Sigit Prastowo, the Financial Director of Bank Mandiri, explained that despite the credit interest rate has been lowered by 25-250 basis points in Q1 2021, NIM has increased from 4.47% in December 2020 to 5.1% in March 2021. This gain resulted after BMRI shrank its cost of fund from 2.53% in December 2020 to 1.8% in March 2021.

Prastowo stated that the company would keep the cost of fund at 1.8% or less until the end of the year. In his opinion, the loosening liquidity would make it possible to maintain that level. Furthermore, for NIM, BMRI aimed to stay at 4.8% to 5.1% by the end of the year.

BMRI recorded a 12.6% increase in its net interest income, going along with the increasing credit of 9.1% year-on-year (yoy). Meanwhile, this quarter’s net profit reached IDR 5.9 trillion, taking a downturn by 25.2% yoy, yet still soaring by 91.5% from the net profit in Q4 2020.

The declining net profit partly resulted from provision costs that went higher to 55.4%, from IDR 3.5 trillion in Q1 2020 to IDR 5.4 trillion in Q1 2021. (AM/ZH)

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