Financial liabilities continued Derecognition

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 40

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued c. Financial instruments continued

E. Classes of financial instruments continued

Category Class Sub-classes At fair value through profit or loss Financial liabilities held for trading Derivative payables - non hedging related At amortised cost Deposits from customers Demandwadiah deposits Savingwadiah deposits Time deposits Deposits from other banks Demandwadiah and savingwadiah deposits Inter-bank call money Time deposits Financial liabilities Securities sold under repurchase agreements Acceptance payables Marketable securities issued Accrued expenses Other liabilities Payable to customers Guarantee deposits Payable from purchase of marketable securities Liabilities related to ATM and credit card transaction Subordinated loans Off-balance sheet financial instruments Committed unused loan facilities granted Outstanding irrevocable letters of credit Bank guarantees issued Standby letters of credit F. Offsetting financial instruments Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. This means that the right to set off: a. Must not be contingent on a future event, and b. Must be legally enforceable in all of the following circumstances: i. The normal course of business ii. The event of default iii. The event of insolvency or bankruptcy 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 41

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued c. Financial instruments continued