Bank Mandiri’s Annual General Meeting of Shareholders (AGMS) determined 60% of the consolidated net profit in 2023 or IDR 33.03 trillion as dividends to be distributed to shareholders. Meanwhile, 40% of last year’s consolidated net profit was agreed to be retained earnings for capital strengthening and business development.
From this value, the total dividends distributed to the Republic of Indonesia for ownership of 52% of Bank Mandiri shares or IDR 17 trillion will be deposited into the State General Treasury Account. In more detail, the amount of dividends per share or dividend per share for the bank with the issuer code BMRI reached around IDR 353.95, up 33% year on year (YoY).
Meanwhile, throughout 2023, Bank Mandiri managed to obtain a net profit of IDR 55.1 trillion or grew 33.7% year on year (YoY). This profit is also the largest since Bank Mandiri was founded 25 years ago.
Bank Mandiri President Director Darmawan Junaidi said that the amount of this dividend was in line with the company management’s commitment to contribute optimally to the development of the country and the company’s consistency in being the main financial partner of choice for customers. “This decision also indicates strong support from shareholders for management to accelerate the company’s business expansion plans,” explained Darmawan in his official statement, Thursday (7/3).
Apart from dividends, Darmawan added that Bank Mandiri’s important role as a state-owned company is reflected in its contribution to state revenues in the form of taxes and non-taxes. In 2023, Bank Mandiri’s total deposits to the state (tax, customs and other PNBP) will reach IDR 665.29 trillion, an increase of 12.37% YoY.
The amount of the dividend has taken into account Bank Mandiri’s liquidity position and capital structure to support plans for 2024. After dividend distribution, Bank Mandiri’s capital adequacy ratio (CAR) until the end of the year is projected to be at approximately the same level as December 2023.
Also read: Brilliantly, BRI Manages to Make a Profit of IDR 60.4 T Throughout 2023
Change in management composition
Bank Mandiri’s AGMS approved changes to the composition of the company’s management, namely dismissing Susana Indah Kris Indriati as director and Andrinof A. Chaniago and Nawal Nely as company commissioners. The shareholders then transferred the assignment of Deputy President Commissioner to Zainudin Amali and transferred Riduan as Director of Corporate Banking and appointed Tedi Bharata as the company’s commissioner.
The Director of Commercial Banking at Bank Mandiri, which was held by Riduan, was replaced by Totok Priyambodo, who was previously SEVP Commercial Banking at Bank Mandiri. Danis Subyantoro was appointed as Director of Risk Management at Bank Mandiri replacing Ahmad Siddik Badruddin who was assigned as Director of Risk Management at Pertamina. For information, previously Danis Subyantoro served as SEVP Internal Audit of Bank Mandiri.
Solid performance
Throughout 2023, Bank Mandiri was able to record brilliant performance. This can be seen from Bank Mandiri’s total consolidated assets which managed to reach IDR 2,174.2 trillion or an increase of 9.12% YoY from the previous year of IDR 1,992.5 trillion. This increase is inseparable from the realization of Bank Mandiri’s credit distribution in 2023 which reached IDR 1,398.1 trillion or grew 16.3% annually, exceeding industrial credit growth of 10.38% YoY.
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This impressive credit growth occurred in all segments, one of which was dominated by corporate credit which reached IDR 490 trillion at the end of 2023 or grew 18.3% yoy. In addition, commercial credit recorded positive performance with the highest growth compared to other segments at 21.2% YoY to IDR 238 trillion at the end of 2023.
Meanwhile, the SME segment grew well, reaching 14% yoy to IDR 77 trillion. Meanwhile, the micro segment grew by 10.4% yoy, reaching IDR 168 trillion.
This growth is also balanced by asset quality which continues to improve. As of the end of 2023, Bank Mandiri’s Non-Performing Loan (NPL) ratio on a bank only basis managed to fall by 86 basis points (bps) YoY to 1.02%. Even though the NPL has relatively decreased, the company still maintains its reserve ratio (NPL coverage ratio) at a conservative level, namely 384%.
This intermediation function is also balanced by consolidated growth in TPF which grew by 5.78% YoY to IDR 1,577 trillion in 2023. DPK growth was driven by an increase in cheap funds of 7.05% on an annual basis which was supported by current account growth of 7.92% YoY to IDR 585 trillion and savings increased 6.19% YoY to IDR 587 trillion. (Z-2)
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