Bank Mandiri, Jakarta's largest bank, has seen its net profit decrease by a dramatic 32.1% YoY. In 2015, the state lender logged a IDR20.3tn ($1.6bn) net profit, but only recorded IDR13.8tn for 2016. The bank's net profit fell as it set aside operating income to raise its provisions for loan loss coverage, according to the lender's President Director Kartika Wirjoatmodjo. This follows the rising ratio of non-performing loans to total gross loans.
Bank Mandiri, Indonesia's largest bank, has seen its net profit decrease by a dramatic 32.1% YoY. In 2015, the state lender logged a IDR20.3tn ($1.6bn) net profit, but only recorded IDR13.8tn for 2016. The bank's net profit fell as it set aside operating income to raise its provisions for loan loss coverage, according to the lender's President Director Kartika Wirjoatmodjo. This follows the rising ratio of non-performing loans to total gross loans.