Jakarta. State-owned Bank Mandiri (BMRI) reported strong financial results for the first half of 2024, posting a consolidated net profit of Rp 26.6 trillion ($1.71 billion), reflecting a 5.23 percent year-on-year (y-o-y) increase.

"Bank Mandiri's consolidated loan growth was robust across all segments, with corporate lending as the largest contributor," said Sigit Prastowo, Director of Finance and Strategy, at the company's public expose in Jakarta on Tuesday.

Consolidated loan disbursements reached Rp 1,532 trillion in the first half of 2024, marking a 20.5 percent year-on-year growth, surpassing the banking industry's average increase of 12.36 percent as of June 2024.

Corporate loans reached Rp 561 trillion in Q2 2024, a 29.7 percent y-o-y rise from Rp 433 trillion the previous year.

The commercial segment also performed well, with loans increasing by 21.7 percent y-o-y to Rp 262 trillion. Meanwhile, lending to micro, small, and medium enterprises (MSMEs) grew by 6.3 percent y-o-y, totaling Rp 127 trillion.

Consumer loans saw a 9.02 percent y-o-y growth, reaching Rp 116 trillion. Bank Mandiri’s total consolidated assets exceeded Rp 2,258 trillion as of June 2024, a 15 percent increase compared to last year.

Sigit noted that profit growth was supported by a healthy 12.5 percent y-o-y increase in interest income in Q2 2024. Non-interest income also rose, reaching Rp 19.41 trillion, up 5.74 percent y-o-y.

The boost in non-interest income was driven by recurring fees from digital transactions, particularly via the Livin’ by Mandiri platform, which recorded a 26.4 percent y-o-y increase. Sigit added that Bank Mandiri’s strong performance was further supported by contributions from its subsidiaries.

"Bank Mandiri’s subsidiaries delivered a consolidated net profit of Rp 5.7 trillion, a 10 percent y-o-y increase, with a net profit contribution of Rp 2.98 trillion in Q2 2024," Sigit said.

He highlighted that this performance has significantly boosted Bank Mandiri's stock, yielding a 129 percent return, outperforming other banks and the Jakarta Composite Index (JCI), which has grown by 26.4 percent since late 2020.

"As of Aug. 21, Bank Mandiri's stock has grown by 19.8 percent y-o-y, continuing to positively contribute to the JCI, which rose by 3.87 percent y-o-y over the same period," Sigit concluded.