Jakarta, July 1, 2024 - In line with a sustainable business strategy and solid domestic economic conditions, a subsidiary of the Bank Mandiri Group recorded a net profit of IDR 3 trillion in the first quarter of 2024, growing 10.62% year on year (YoY). Of that amount, the total net profit attributed to the owner or Bank Mandiri was recorded at IDR 1.57 trillion, up 7.56% YoY.

Bank Mandiri President Director Darmawan Junaidi said, thanks to the contribution of this subsidiary, Bank Mandiri successfully posted a consolidated net profit of IDR 12.7 trillion in the first quarter of 2024, growing 1.13% YoY. In terms of lending, Bank Mandiri recorded consolidated loans reaching IDR 1,435 trillion in the first quarter of 2024, an increase of 19.1% YoY.

"All of Mandiri Group's achievements are inseparable from solid synergy as well as the ability to adapt and innovate towards digitalization, thus achieving sustainable performance growth," said Darmawan in his statement, Monday (1/7).

When detailed, Bank Mandiri's subsidiaries managed to record solid performance throughout the first quarter of 2024. PT Bank Syariah Indonesia Tbk or BSI, was able to seize growth opportunities as reflected in the net profit achievement of IDR 1.7 trillion, up 17.1% YoY.

BSI's growth is certainly inseparable from the intermediation or financing function which also soared by 15.2% YoY to IDR 244.1 trillion at the end of the first quarter of 2024. Thanks to this achievement, BSI managed to record asset growth of 14.3% YoY, reaching IDR 357.9 trillion.

This achievement also strengthened BSI's position as the largest sharia bank in Indonesia. This is reflected in the number of fund customers reaching 20.1 million with an improving trend. "We are optimistic that with strengthened fundamentals and digital transformation, BSI will be able to face dynamics and provide the best service in the sharia industry," Darmawan emphasized.

Not only BSI, Bank Mandiri's subsidiary in the banking sector, PT Bank Mandiri Taspen (Mantap), also recorded significant profit in the first quarter of 2024. Bank Mantap's total net profit grew 10.1% to IDR 485 billion thanks to a series of digital innovations and service development to the community.

Bank Mantap's growth was also followed by the growth in loans and third-party funds (DPK). With growth of 12.6% and 12.1% respectively YoY. The growth of Bank Mantap's loans was mainly supported by pension loans which increased by 12.8% YoY, reaching IDR 42.1 trillion by the end of the first quarter of 2024.

"The significant contribution from Mandiri Group is expected to have a positive impact on inclusive economic growth, creating added value and positive benefits for the community," explained Darmawan.

Multifinance Support for the Community

In addition to banking, Bank Mandiri's subsidiaries in the multifinance sector also contributed positively through improved financial performance. PT Mandiri Tunas Finance (MTF) and PT Mandiri Utama Finance (MUF) were able to contribute to the increase in Mandiri Group assets through significant growth.

MTF, up to the end of March 2024, recorded total assets of IDR 31.48 trillion, growing 22.6% from the previous year's IDR 25.67 trillion. This positive performance was followed by net profit growth of 14.1% YoY.

Meanwhile, MUF's total assets recorded the highest growth among all Bank Mandiri subsidiaries, growing 43.6% YoY to IDR 12.07 trillion. MUF's asset growth was inseparable from the financing realization which increased by 42.86% YoY with maintained quality.

In general, the success of Bank Mandiri's subsidiaries in the multifinance sector is inseparable from the distribution strategy strengthened by the regular market and captive market of Mandiri Group, which are also customers of Bank Mandiri, BSI, and Bank Mantap.

In line with this growth, Mandiri Group's multifinance business is expected to continue to grow with the optimization of strategies, expansion, digital transformation, ecosystem expansion, and service improvement to customers.

"Mandiri Group's success in positively contributing to the economy is a form of our consistency and commitment in synergizing to expand the complete financial ecosystem for the community," added Darmawan.

Improving Securities and Insurance Performance

Furthermore, the performance of Bank Mandiri's subsidiaries in the securities and insurance sectors also recorded outstanding results. PT Mandiri Sekuritas, up to the end of March 2024, managed to manage more than 320 thousand customers. Moreover, thanks to service innovation and synergy with Mandiri Group, Mandiri Sekuritas has now acquired more than 40,000 additional customers, a result of the MOST innovation with RDN Livin' by Mandiri, Regional, and BSI.

As for the first quarter of 2024, Mandiri Sekuritas' total assets have reached IDR 6.4 trillion, growing 11.5% YoY, with business income of IDR 256 billion supported by three business lines: Retail, Investment Banking, and Capital Market.

On the other hand, PT AXA Mandiri Financial Services (AXA Mandiri) continues to record improved performance. This is reflected in total assets reaching IDR 42.03 trillion by the end of the first quarter of 2024. This was also followed by the number of insured individuals across Indonesia increasing to 3.7 million in the same period.

This achievement was also supported by the company's initiative to continuously enhance life and health protection for the community by providing inclusive life insurance products and innovative services.

Risk-Based Capital (RBC) also remained strong, reaching 578% by the first quarter of 2024, more than four times the minimum limit set by the OJK, which is 120%. This reflects AXA Mandiri's financial health strength to continue providing life insurance protection for its customers.

"We are very proud and appreciative of the ability of Bank Mandiri Group's subsidiaries to drive positive business growth. With this achievement, Mandiri Group is increasingly solid in carrying out the company's vision and mission to provide added value for all stakeholders," concluded Darmawan.