Quantitative Disclosure Market Risk

10 Consolidated Financial Statements 09 Cross Reference of Annual Report Award 2016 Criteria 08 Corporate Social Responsibility 07 Integrated Corporate Governance 06 Corporate Governance

B. Quantitative Disclosure

1 Disclosure of Market Risk by using Standard Method Table 7.1. Disclosure of Market Risk by using Standard Method in million Rupiah No. Type of Risk December 31, 2016 December 31, 2015 Bank Consolidated Bank Consolidated Capital Charge RWA Capital Charge RWA Capital Charge RWA Capital Charge RWA 1 2 3 4 5 6 7 8 9 10 1 Interest Rate Risks a. Specific Risks 798.40 9,980.02 2,302.28 28,778.55 470.49 5,881.18 3,043.86 38,048.22 b. General Risks 61,190.96 764,886.94 63,213.15 790,164.32 43,958.69 549,483.57 48,438.17 605,477.09 2 Exchange Rate Risks 82,065.66 1,025,820.81 43,461.24 543,265.53 20,004.88 250,061.00 19,000.43 237,505.31 3 Equity Risks - - 54.56 682.00 - - 41.05 513.13 4 Commodity Risks - - - - - - - - 5 Option Risks 7.22 90.31 7.22 90.31 - - - - Total 144,062.25 1,800,778.08 109,038.46 1,362,980.71 64,434.06 805,425.75 70,523.50 881,543.75 2 Disclosure of Interest Rate Risk in Banking Book IRRBB Exposure The disclosure of IRRBB exposure is an increase or decrease of economic value and earnings against the interest rate movements based on the gap reports which drafted by the Bank in order to meet the provisions concerning commercial bank soundness and application of risk management for commercial banks. Bank Mandiri using repricing gap and perform sensitivity analysis in order to obtain a projected Net Interest Income NII and the Economic Value of Equity EVE. Based on the simulation results of sensitivity analysis per December 31, 2016, the impact of changes in interest rates by 100 bps would result in NII Bank fell by 3:42 for the 12 months ahead of the target set and Equity Bank fell by 1.96. Description December 31, 2016 December 31, 2015 “NII Sensitivity, NII 12 mo 100bps : against NII target” 3.42 2.92 “EVE Sensitivity 100 bps: against Equity” 1.96 1.76 “Earning at Risk against Equity” 0.30 0.22 “Capital at Risk Equity” 1.84 0.92 Foreign exchange risk is a risk which arising from the fluctuation of exchange rates in the opposite market when Bank Mandiri in an open positions. Foreign exchange risk is derived from foreign exchange transactions with customers and counterparties which led to the open position in foreign currency or structural positions in foreign currency due to capital investment. Bank Mandiri managed its foreign exchange risk by monitoring and managing the Net Open Position NOP in accordance by the internal and regulatory limits. As of December 31, 2016, PDN overall absolute amounted to 0.77 of the capital. 03 Company at a Glance 04 Management Discussion and Analysis on Companys Performance 05 Review of Business Support Function 01 Main Highlights 02 Management Report

3. Liquidity Risk