SHARE CAPITAL continued a. Authorised, Issued and Fully Paid-in Capital continued

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 179

40. SHARE CAPITAL continued c. Distribution of net income continued

Dividends from 2015 net income amounted to Rp6,100,490 were paid on April 22, 2016 and dividends from 2014 net income amounted to Rp4,967,968 were paid on April 17, 2015. Payment of dividends were recorded in the consolidated statement of changes in equity on the respective payment date. The appropriated retained earnings for the year 2015 amounting Rp2,277,517 and the year 2014 amounting Rp2,622,936 is allocated for Bank investments purposes. As of 30 September 2016, the Bank reclassified appropriated retained earnings into unappropriated retained earnings amounting to Rp9,299,631 to maintain a stable capital structure in order to support operational activities. 41. INTEREST INCOME AND SHARIA INCOME Interest income and sharia income are as follow: Year ended December 31, 2016 2015 Interest income Loans 59,175,505 55,191,771 Government bonds 5,352,859 5,273,855 Marketable securities 1,833,272 1,626,369 Consumer financing income 2,007,598 1,523,637 Placements with Bank Indonesia and other banks 1,244,587 1,337,831 Others 1,531,580 1,413,196 71,145,401 66,366,659 Sharia income Murabahah and Istishna income - net 4,048,565 3,832,690 Musyarakah income 1,104,685 887,760 Mudharabah income 362,083 364,450 Ijarah income - net 49,154 118,568 5,564,487 5,203,468 76,709,888 71,570,127 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 December 31, 2016 and 2015 amounting to Rp721,979 and Rp560,920, respectively and fees and commissions income directly attributable to lending activities amortised using effective interest rate method for the year ended December 31, 2016 and 2015 amounting to Rp1,910,617 and Rp1,586,373, respectively. As of December 31, 2016 and 2015 included in interest income and sharia income is the income from transaction with related parties on government bonds and treasury bill amounting to Rp5,490,404 and Rp5,364,814 respectively refer to Note 55. 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 180

42. INTEREST EXPENSE AND SHARIA EXPENSE

Interest expense and sharia expense are incurred on the following: Year ended December 31, 2016 2015 Time deposits 15,857,141 18,487,729 Saving deposits 2,932,804 2,918,599 Demand deposits 2,295,767 1,961,379 Fund borrowings 1,771,326 1,206,241 Marketable securities issued 641,132 454,181 Subordinated loans 399,916 424,118 Others 986,433 754,777 24,884,519 26,207,024 Included in interest expense of time deposits, saving deposits, and demand deposits is expense based on sharia principle for the years ended December 31, 2016 and 2015 amounting to Rp2,338,854 and Rp2,438,112, 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, 2016 and 2015 amounting to Rp971 and Rp3,759, respectively Note 55.

43. OTHER OPERATING INCOME - OTHERS Year ended December 31,

2016 2015 Receptions back on loans which have been written in the last period in accordance with the application of SFAS No. 55 3,480,564 3,186,074 Income from loan written-off 221,370 244,058 Income from penalty 237,825 196,154 Stamp duty income 46,122 47,275 Safety deposit box 38,749 34,954 Others 1,556,559 2,417,255 5,581,189 6,125,770