SEGMENT INFORMATION continued Laporan Tahunan 2016 PT Bank Mandiri (Persero) Tbk versi B.Inggris

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 212

56. SEGMENT INFORMATION continued

Information on geographical segment for the year ended December 31, 2015: Cayman Indonesia Asia West Europe Islands Consolidated Consolidated statement of profit or loss and other comprehensive income Interest and sharia income 70,785,127 498,088 48,064 238,848 71,570,127 Interest and sharia expense 26,137,564 59,491 7,602 2,367 26,207,024 Net interest and sharia income 44,647,563 438,597 40,462 236,481 45,363,103 Net premium income 3,137,070 - - - 3,137,070 Net interest and sharia and premium income 47,784,633 438,597 40,462 236,481 48,500,173 Other operating income: Other fees and commissions 9,890,713 108,816 - 15,281 10,014,810 Others 8,324,401 27,651 9,464 2,352 8,363,868 Total 18,215,114 136,467 9,464 17,633 18,378,678 Allowance forreversal of impairment losses on financial assets and others 12,017,145 82,013 2,194 54,435 12,042,529 Unrealised gainslosses from fair value increasedecrease marketable securities, government bonds, and policyholders’ investment 18,621 315 - - 18,306 Gain on sale of marketable securities and government bonds 272,315 3,229 - 45 275,499 Other operating expenses: Salaries and employee benefit 12,207,391 138,417 21,917 8,930 12,376,655 General, administrative expenses and others 16,220,389 108,800 21,055 27,644 16,377,888 Total 28,427,780 247,217 42,972 36,574 28,754,543 Non operating incomeexpense - net 39,456 3,215 - 12,213 30,458 Tax expense 5,184,006 31,373 1,653 - 5,217,032 Net income 20,663,966 221,220 7,495 259,717 21,152,398 Net income attributable to: Noncontrolling interest - - - - 817,430 Parent Entity - - - - 20,334,968 Consolidated statement of financial position Loans 565,407,232 13,895,797 61,582 7,310,826 586,675,437 Total asset 876,142,485 21,856,619 2,543,040 9,521,265 910,063,409 Demand depositwadiah demand deposits 169,257,095 2,871,186 26,207 - 172,154,488 Saving depositwadiah saving deposits 247,459,462 1,492,177 - - 248,951,639 Time deposits 199,410,001 1,816,203 - - 201,226,204 Total deposit from customers 616,126,558 6,179,566 26,207 - 622,332,331 Total liabilities 702,900,723 21,854,051 1,896,441 9,547,490 736,198,705 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 213

57. CAPITAL ADEQUACY RATIO

Capital risk management Bank Mandiri’s capital policy is to prudently diversify the source of its capital to anticipate the long-term strategic plan and to allocate capital efficiently to business segment that has a potential to provide an optimum risk of return, includes investment in subsidiaries in order to fulfil the stakeholders, including investor’s and regulator’s, expectations. Bank Mandiri ensures it has sufficient capital to meet credit risk, market risk and operational risk, both in normal and stress conditions as well as becoming the basis for the Bank in implementing VBM Value Based Management through the measurement RORAC Return on Risk Adjusted Capital and RORWA Return on Risk Weight Assets. With VBM, the Bank can identify business units, segments, products, regions that provide value to the Bank. Thus the bank can focus on developing business that provides the most value to the Bank. The Bank refers to Bank Indonesia regulation in calculating the capital adequacy for credit risk, market risk and operational risk. For credit risk, the Bank uses Standardised Approach. Currently the Bank is developing the calculation methodology of capital adequacy with advanced approach, both regulatory IRBA and Economic Capital approach. Economic capital approach is developed for credit risk and operational risk. For the market risk, The Bankuses Standardised Model and The Bank has also used Value at Risk for its internal model. For operational risk, the Bank refers to Basel II Basic Indicator Approach and has simulated the Standardised Approach. In the implemention of the FSA’s Circular Letter No. 42SEOJK. 032016 dated September 28, 2016 regarding the calculation of credit risk weighted assets using the standard approach, the results of the calculation of RWA of the Bank showed credit risk RWA for the position of December 31, 2016 amounted to Rp549,646,704. The position of market risk RWA and RWA with the standardized approach to operational risk Basic Indicator Approach approach shows the number of each of Rp1,800,778 and Rp91,932,008. The Capital Adequacy Ratio CAR per December 31, 2016 calculated in accordance with FSA Regulation No. 34 POJK.032016 dated September 22, 2016 on Amendments to the FSA Regulation No. 11POJK.032016 concerning the Minimum Capital Requirement for Commercial Banks, while the CAR per December 31, 2015 calculated in accordance with PBI No. 1512PBI2013 dated December 12, 2013 concerning Minimum Capital Requirement for Commercial Banks. The CAR Bank Mandiri only as of December 31, 2016 and 2015 are as follows: December 31, December 31, 2016 2015 Capital: Core capital 130,356,495 93,252,808 Supplementary capital 7,075,719 14,135,338 Total Capital for credit risk, operational risk and market risk charge 137,432,214 107,388,146 Risk-Weighted Assets for credit 549,646,704 497,912,789 Risk-Weighted Assets for operasional 91,932,008 78,627,774 Risk-Weighted Assets for market risk 1,800,778 805,426 Total Risk-Weighted Assets for credit, operational and market risk charge 643,379,490 577,345,989