Difference in Transactions of Equity Changes in Subsidiaries

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 5124 35. INTEREST INCOME Interest income was derived from the following: 2010 2009 2008 Loans 24,814,654 21,063,743 15,958,332 Government Bonds 5,702,826 7,437,326 7,798,646 Marketable securities 2,146,955 2,198,833 1,624,862 Placements with Bank Indonesia and other banks 532,119 474,577 662,042 Consumer financing income 342,464 255,617 - Fees and commissions - 958,705 839,750 Others 392,632 210,163 452,605 33,931,650 32,598,964 27,336,237 Included in interest income from loans is interest income recognised on the non-impaired portion of the impaired loans time value unwinding for the year ended 31 December 2010 amounting to Rp515,916 and fees and commissions income directly attributable to lending activities amortised using effective interest rate method for the year ended 31 December 2010 amounting to Rp550,277. Included in interest income from loans and others is income based on sharia principle for the years ended 31 December 2010, 2009 and 2008, amounting to Rp2,380,488, Rp1,770,270 and Rp1,555,619 respectively as follows: 2010 2009 2008 Murabahah and Istishna income 1,366,532 940,223 824,275 Musyarakah income 442,861 336,320 260,521 Others 571,095 493,727 470,823 2,380,488 1,770,270 1,555,619

36. INTEREST EXPENSE

Interest expense was incurred on the following: 2010 2009 2008 Time deposits 8,939,093 9,861,521 7,021,740 Saving deposits 2,585,365 2,538,889 2,578,878 Demand deposits 1,294,351 1,852,012 1,385,656 Insurance premiums on third party funds guarantee program Note 58 651,057 580,972 484,980 Subordinated loans 434,964 48,752 70,012 Fund borrowings 279,439 457,632 569,958 Marketable securities issued 100,218 60,563 178,442 Others 110,111 274,872 81,751 14,394,598 15,675,213 12,371,417 Effective from 1 January 2010, total sweepstakes prize expense is categorised as general and administrative expenses – promotion Note 43 whilst before that it was categorised as others interest expense. As at 31 December 2010, the total sweepstakes prize expense is amounting to Rp47,423. Included in interest expense of time deposits and saving deposits is expense based on sharia principle for the years ended 31 December 2010, 2009 and 2008 amounting to Rp1,161,680, Rp901,570 and Rp793,049 respectively.