Additional Paid-In CapitalShare Premium

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 169

42. INTEREST EXPENSE AND SHARIA EXPENSE

Interest expense and sharia expense are incurred on the following: For the year ended December 31, 2015 2014 Time deposits 18,487,729 16,481,206 Saving deposits 2,918,599 3,352,005 Demand deposits 1,961,379 1,562,423 Fund borrowings 1,206,241 825,948 Marketable securities issued 454,181 446,278 Subordinated loans 424,118 425,860 Others 754,777 411,798 26,207,024 23,505,518 Included in interest expense of time deposits and saving deposits is expense based on sharia principle for the years ended December 31, 2015 and 2014 amounting to Rp2,438,112 and Rp2,451,302, respectively. Included in interest expense and sharia expense above are interest expense from related parties transactions from fund borrowings for the years ended December 31, 2015 and 2014 amounting to Rp3,759 and Rp59,292, respectively Note 55.

43. OTHER OPERATING INCOME - OTHERS For the year ended December 31,

2015 2014 Income from loan written-off 3,430,132 2,607,206 Income from penalty 196,154 156,921 Stamp duty income 47,275 48,237 Safety deposit box 34,954 34,979 Others 2,417,255 1,120,858 6,125,770 3,968,201 44. ALLOWANCE FOR IMPAIRMENT LOSSES For the year ended December 31, 2015 2014 Allowancereversal for provision of impairment losses on: Current accounts with other banks Note 5d 46 6,846 Placements with other banks Note 6e 26,256 10,321 Marketable securities Note 7g 34,394 18,804 Other receivables - trade transactions Note 9d 41,428 115,522 Securities purchased under resale agreements Note 10c 41,941 41,941 Loans Note 12B.j 11,460,581 5,294,726 Consumer financing receivables Note 13c 291,624 209,113 Net investment in lease finance Note 14c 2,356 10,806 Acceptance receivables Note 15d 16,822 44,873 Investments in shares Note 16c 7,087 488 11,664,837 5,718,130 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 170

45. PROVISION FOR REVERSAL OF POSSIBLE LOSSES For the year ended December 31,

2015 2014 Allowancereversal provision for: Estimated losses arising from fraud cases 10,266 11,710 Estimated losses arising from legal cases 11,594 129,296 Others assets Note 20 157,382 42,475 179,242 183,481 46. UNREALISED GAINSLOSSES FROM INCREASEDECREASE IN FAIR VALUE OF MARKETABLE SECURITIES, GOVERNMENT BONDS AND POLICYHOLDERS INVESTMENT IN UNIT-LINKED CONTRACTS For the year ended December 31, 2015 2014 Marketable securities 992 93,824 Government bonds 19,298 52,697 Changes in market value of policyholders’ investment and increasedecrease in liability in unit-linked contracts - Change in market value of policyholders’ investment 2,142,173 2,860,353 - Increase in liability in unit-linked contracts 2,142,173 2,860,353 18,306 146,521 47. GAIN ON SALE OF MARKETABLE SECURITIES AND GOVERNMENT BONDS For the year ended December 31, 2015 2014 Marketable securities Fair value through profit and loss 27,760 39,425 Available for sale 62,683 33,355 Government bonds Fair value through profit and loss 21,219 45,220 Available for sale 219,357 116,463 275,499 234,463