In 2011-2012 the Commercial and Business Banking Directorate CBB
implemented a capability building year in terms of the distribution network
expansion, organizational development, readiness of competent human resources
and wholesale infrastructure support service transactions, preparing to
bring the Directorate of Commercial Business Banking complete solutions for
Commercial Banking customers along with quick easy services to Business
Banking customers. In 2011, the business volume of the CBB
Directorate reached Rp158.6 trillion increasing 24.07 from 2010, and the
acquisition of Fee Based Income reached Rp1.3 trillion, representing an increase of
30.46 from 2010
COMMERCIAL BUSINESS BANKING
CONTRIBUTION MARGIN Rp. Trillion
2009 2010
2011
4.45 4.72
5.06
2009 25
50 75
100 125
2010 2011
TOTAL LOANS Rp. Trillion
Fx Rupiah
2009 3
6 9
12 15
2010 2011
LOAN YIELD
Fx Rupiah
2009 2
4 6
8 10
2010 2011
NET INTEREST INCOME Rp. Trillion
Fx Rupiah
2009 10
20 30
40 50
2010 2011
TOTAL DEPOSITS Rp. Trillion
Fx Rupiah
2009 1
2 3
4 5
2010 2011
COST OF LIABILITIES
Fx Rupiah
2009 2010
2011
FEE INCOME Rp. Billion
707 997
1,301
2009 150
300 450
600 750
2010 2011
OVERHEAD EXPENSES Rp. Billion
General Administrative Personnel
2009 0,5
1 1,5
2 2.5
2010 2011
NPL
Fx Rupiah
REVIEW AND BUSINESS CONDITION
COMMERCIAL BUSINESS BANKING
Annual Report PT Bank Mandiri Persero Tbk.
FINANCIAL YEAR 2011
In the midst of business competition which is becoming increasingly fierce, the
Directorate of Commercial Business Banking successfully executed on the
business plan. To support the second phase of Bank Mandiri’s transformation
process, the role of the Directorate of Commercial Business Banking is
aiming to boost the growth of wholesale transactions in Commercial Banking
and also retail financing in the Business Banking segment.
Several strategic initiatives have been implemented in 2011 in order to build
a strong and solid organization going forward in the Directorate of Commercial
Business Banking including:
First, develop the CBB network in potential growth areas throughout
Indonesia. In 2011, we expanded the Commercial Banking network through the
formation of 4 four Commercial Banking Centers CBC which consist of Jakarta
Sudirman CBC, Jakarta Iskandarsyah CBC, Batam CBC and Surabaya Jembatan
Merah; opening 5 five Commercial Floors in Sorong, Mataram, Kupang, Dumai
and Banda Aceh; the opening of two 2 Trade Servicing Centers TSC in Malang
and Pontianak, and the opening 2 Trade Servicing Desks TSD in Lhok Tuan and
Pangkal Pinang.
The Business Banking networks development was formed through 5 five
Business Banking Center BBC which are in Palembang II BBC, TB Simatupang BBC,
Purwokerto BBC, Banjar Baru BBC and Sorong BBC. In addition, the BBC also has
formed 8 eight Business Banking Floors, 10 ten Business Banking Desk outlets
and 21 Mandiri Business outlets. Thus, the size of the Commercial Banking network
today is 24 CBC’s, 26 Commercial Floors, 13 TSC’s, and 14 TSD’s. While for Business
Banking, Bank Mandiri offers 34 BBC’s, 72 BB Floors, 85 BB Desks, and 24 Mandiri
Business outlets.
Second, the implementation of the officer development program to help
fulfill human capital needs in the CBB Directorate both from a quantitative and
qualitative aspect. During 2011, the total number of CBB recruits reached 640
people, and total CBB employees at the end of 2011 reached 2,430. In addition
to the quantity of human fulfillment, we continuously strive to improve the quality
of human resources through competency development initiatives based on analysis
of Relationship Manager productivity credits in the CBC and BBC. Thus, the
competency development program has provided capacity and capabilities that
are tailored to each RM. The competency development program in the Directorate
of CBB consists of soft skills and technical skills improvements, CBB Academy
training programs, mentoring of new employees, job attachment in the banking
sector and other relevant industry sectors, as well as coaching and counseling.
Third, the development of systems and infrastructure which are carried
out through 4 four main initiatives; the development of Mandiri Cash
Management Features, E-Tax Payment which is a tax payment services
through the electronic channel utilizing Mandiri Cash Management MCM,
SOA infrastructure capacity and MCM infrastructure development.
Fourth, the development of the Wholesale Transaction business through
product bundling offers in particular to Commercial segment customers.
Relationship Managers in the Commercial
REVIEW AND BUSINESS CONDITION
COMMERCIAL BUSINESS BANKING
28.2
Growth in CBB Lending
Annual Report PT Bank Mandiri Persero Tbk.
Banking business unit are directed to understand the process and the cash
flows of the payment and collection activities of the customer, including
the value chain potential and to then offer total solutions through bundling of
productsservices on the assets, liabilities, trade and other transaction products.
Fifth, development of promotional strategies which the Commercial Banking
segment focuses on including transaction banking products along with organizing
eventsgathering to increase market awareness. The promotion strategy is
focused on Business Banking segment 2 two main things: first, increased
awareness on the speed of service and ease of access for SMEs actors, with the
umbrella campaign “Quick Easy”, second, promotion improvement to introduce
Mandiri Business as special services for business clients.
The effectiveness of fifth strategy implemented should be integrated from
solid support and cooperation with our business partners utilizing the “3
Pillars” Risk Management and Credit Operations, operational support in all
branches of Bank Mandiri, as well as the implementation of the alliance program
to optimally coordinate with the Regional CEO of the alliance including the strategic
business unit at Bank Mandiri, as well as alliances with companies within the scope
of Bank Mandiri’s subsidiaries.
In addition to the five strategic initiatives at the Directorate level as described
above, to ensure that the entire vision, mission, and all the Directorate’s strategic
initiatives are understood and executed in the field by all business units refocusing
and aligning strategies has been a priority in 2011. These five programs have been
implemented across the business unit, even down to the smallest unit, and shall
be implemented by each RM in carrying out its duties and responsibilities.
Successful implementation of all work programs and strategic initiatives during
2011 resulted in excellent financial performance, as Contribution Margin
reached Rp5.1 trillion, an increase of 7.58 from the previous year which
amounted to Rp4.7 trillion. This achievement was driven by increased
net interest income which totaled Rp5.5 trillion, or growth of 5.58 from the
previous year which amounted to Rp5.2 trillion, as well as fee-based income
revenue growth to Rp1.3 trillion, up 30.46 from Rp997.2 billion for the same
period in 2010.
In the area of loan growth the directorate reported encouraging growth in 2011
reaching Rp55.8 trillion in total growth, consisting of Commercial banking
increasing by Rp44.9 Trillion and Business Banking Rp10.9 trillion, of which
Rp15.3 trillion or 27.41 of the gross expansion was from new debtors and
Commercial Banking segment as much as Rp6.9 trillion or 12.36 came from
new Business Banking customers. This expanded total commercial and business
banking loans up to Rp110.9 trillion or an increase of 28.23 from the previous
year, consisting of Rp80.7 trillion of Commercial loans growing at 26.48
from a year ago and Rp30.2 trillion of loans from the Business Banking segment
up 33.15 from a year ago. With the increase in loan volume, market share in
commercial loans increased to 10.98 from 10.32 in 2010, while the market
share of Business Banking loans increased to 13.34 from 12.54 in 2010. The
higher loan growth did not result in credit quality deterioration as gross NPL’s for the
CBB directorate were 1.54 down from 2.09 at December 31, 2010, and 1.19
gross NPL ratio for Commercial Banking, representing a year on year decline from
1.94 in December 2010, while the NPL ratio for Business Banking reached 2.46,
down from 2.54 in the previous year.
On the funding side, the business strategy implemented by the Directorate
of CBB successfully raised deposits in the segment to Rp47.7 trillion, up 15.37
from the year 2010. Of these funds, a total of Rp42.5 trillion comes from the
Commercial segment which grew 13.91 from last year, while Rp5.2 trillion were
from the Business Banking segment with growth reaching 26.25 in the same
period. This growth implies that the market share of the commercial segment
in 2011 reached 11.53 while Business Banking funding market share reached
4.34. Judging from the composition of low-cost funds Current Account and
Business Savings, the Directorate of CBB’s funding cost was maintained at
67.94 of the total volume of funds or Rp32.4 trillion, consisting of Rp28.1
trillion in Commercial Banking and low-cost funds at 66.10 of the total
and Rp4.3 trillion in Business Banking deposits with low cost funds share
reaching 81.54. The number of clients managed by the CBB funding Directorate
reached 134,423 customers, consisting of 79,031 Commercial Banking customer
segments and 55,392 Business Banking segments.
For fee-based income strategies and work programs implemented in the
Directorate of CBB in 2011 managed to drive fee based income higher by 29.59
from last year. This amounted to growth from Rp578.8 billion to Rp750.0 billion
without taking into account the profit from subsidiary Bank Syariah Mandiri.
The fee-based income data consists of
REVIEW AND BUSINESS CONDITION
COMMERCIAL BUSINESS BANKING
Annual Report PT Bank Mandiri Persero Tbk.
Rp524.0 billion in fee-based income from Commercial Banking and Rp226.0 billion
contributed by the Business Banking segment. In accordance with the target
to encourage the business line to focus on increasing wholesale transactions,
in 2011 there was an increased share of fee-based income derived from wholesale
transactions Trade finance, Cash Management, and Bank Guarantee which
reached Rp246.6 billion or 32.87 of total fee-based income, up from Rp203.6
billion or 21.11 of total fee-based income in in 2010. The fee-based income
from wholesale transaction consists of wholesale transaction fees amounting
to Rp218.3 billion from the Commercial segment, and Rp28.2 billion from the
Business Banking segment.
In addition to the fee-based income business unit CBC and BBC, the
Directorate of CBB also supports the fee based income expansion of the Wholesale
Transaction Banking Solution WTBS group, including Cash Management
and Trade finance. Cash Management business growth showed a significant
improvement as the value of transactions reached Rp817.7 trillion, an increase of
112.33 from Rp385.1 Trillion in 2010, while the number of transactions reached
7.7 million transactions, an increase of 327.78 from the previous year which
amounted to 1.8 million transactions. While the volume of Bank Mandiri’s trade
finance transactions increased to Rp129.8 trillion or an increase of 33.57 compared
to the previous year. In addition, the export market share reached 25.4 of
transactions up from 21.9 in 2010 and reached 16.3 of import transactions an
increase from 11.6 in 2010.
When taking into account the income of the Bank Syariah Mandiri as a subsidiary
under the supervision of the Directorate of CBB, the total fee-based income in 2011
of the Directorate reached Rp1.3 trillion, of which Rp551.1 billion of profits were
accrued from Bank Syariah Mandiri.
Improving financial performance is closely linked to the hard work throughout the
entire Directorate of CBB which has remained consistent in supporting the
vision and mission of Bank Mandiri to become a financial institution that is
always admired and progressive with its business development strategy through
three main areas, namely Wholesale Transaction Banking ¸ Retail and Retail
Payment Deposit Financing.
For the performance of the Directorate of CBB in 2011, the Directorate managed
to earn awards from external agencies including The Asset Triple A Transaction
Banking Awards 2011 for the category of domestic banks in Indonesia Best
Transaction Bank, Best Cash Management Bank and Best Trade Finance Bank, The
Asian Banker award from the The Best Domestic Trade Finance Bank in Indonesia,
an award from Trade Finance Magazine London for Best Indonesian Trade Bank,
etc.
REVIEW AND BUSINESS CONDITION
COMMERCIAL BUSINESS BANKING
Annual Report PT Bank Mandiri Persero Tbk.
CONTRIBUTION MARGIN Rp. Billion
2010 2011
159.4
398.3
10 20
30 40
50
2010 2011
TOTAL DEPOSITS Rp. Trillion
Fx Rupiah
100 200
300 400
500
2010 2011
NET INTEREST INCOME Rp. Billion
5 10
15 20
25
TOTAL LOW COST FUND Rp. Trillion
2010 2011
FEE BASED INCOME Rp.Miliar
9.13
38.10
2010 2011
2 4
6 8
10
COST OF LIABILITIES
Fx Rupiah
2010 2011
The Directorate of Institutional Banking was formed specifically to manage
the separate segments of customers funding the Ministry or State Agencies
and the state of the national private sector clients and private customers
who previously were managed under the foreign segment of the Directorate of
Corporate Banking. 2011 was the second year for the Directorate of Institutional
Banking in contributing to support the advancement of Bank Mandiri
through some of the work programs and initiatives, and managing business
relationships with government clients.
The Directorate of Institutional Banking has competed to maintain market share
against peer banks which compete for
INSTITUTIONAL BANKING
REVIEW AND BUSINESS CONDITION
INSTITUTIONAL BANKING
Annual Report PT Bank Mandiri Persero Tbk.
relationships in this segment. This is reflected in the total funding which
reached Rp35.3 trillion at December 31, 2011 with a breakdown per product as
follows: as the official SEA GAMES Bank in 2011
is to provide sponsorship assistance for the development of the National Sports
and scholarships for athletes who excel.
In addition to the two activities described above, the Directorate of
Institutional Banking in 2011 was able to handle multiple large-scale projects,
including:
1. SNMPTN – The Directorate of Institutional Banking managed to
continue the tradition entrusted to Bank Mandiri to be a sole partner
for the National College Entrance Selection SNMPTN for the 4th
consecutive year 2008-2011. This shows the trust level of the Ministry
of Education in Bank Mandiri’s service quality. In addition to acting
as the sole bank organizer for SNMPTN, Bank Mandiri through the
Directorate of Institutional Banking also contributed to improve the
quality of financial management at several state universities through the
implementation of Cash Management products.
2. Bank Operations I BO I - Bank Mandiri managed the distribution
of DIPA for the period of fiscal year In term of customer categories within
the Institutional Banking Directorate, the total amount of funding is classified
as follows: The Directorate of Institutional Banking
at the end of May 2011 launched the Mandiri Pension Fund DPLK. This
is a legal entity established by a Bank or insurance company to hold
a Defined Contribution Pension Plan for individuals, both employees and
workers of Mandiri and was incorporated to complete the product portfolio by
offering the concept of a one stop shop for financial services, As of the
end of 2011, the Mandiri Pension Fund had launched 5 investment
packages consisting of Money Market Investments, Fixed Income Investments,
Stock Investments, Mixed Investments and Sharia Investments which as a
whole are expected to provide additional fee-based income and a significant
benefit to Bank Mandiri.
In the third quarter of 2011 Bank Mandiri was appointed as the official organizer
of the SEA GAMES in cooperation with the Directorate of Institutional
Banking and the Indonesia SEA GAMES Organizing Committee INASOC which
is one of the independent institution formed by the government to organize
the SEA GAMES through the Ministry of Youth and Sports which is also a
client of the Directorate of Institutional Banking. Participation by Bank Mandiri
REVIEW AND BUSINESS CONDITION
INSTITUTIONAL BANKING
Annual Report PT Bank Mandiri Persero Tbk.
Demand Deposits Rp15,951 billion Saving Deposits Rp126 billion
Time Deposits Rp19,250 billion
Rp. Billion Ministries
58 20,468 State-Owned Enterprises
27 9,627
Subsidiaries of State-Owned Enterprises
7 2,398 Insurance Companies
1 184
Pension Funds 7
2,649
2010 to 2012 which covers most of the Regional Offices and KPPN
DJPBN scattered in various parts of Indonesia. The number of work units
which are managed by Bank Mandiri in the BO I region and out of the BOI
region had no significant increase compared to the achievement of the
prior year period.
3. Oil and Gas Management Board BP Migas and Derivatives Business
Cooperation Contract KKKS – The Directorate of Institutional Banking
maintains an excellent relationship with BP Migas thus providing an
opportunity for Bank Mandiri to facilitate transactions for the
procurement of goods and services and manage Abandonment and Site
Restoration ASR.
4. PT POS Indonesia – The Directorate is working to improve synergies
between Bank Mandiri and PT POS, particularly with respect to
optimizing financial transaction services and office network utilization
and in supporting wholesale transactions. One of the specific roles
of the Directorate of Institutional Banking is as a delivery pick up
service for PT POS .
The acquisition is also intended to maximize the use of Independent
Cash Management for financial transactions and thereby they can be
run more effectively and efficiently. Acquisition of delivery pick up
service was successful in carrying out after a rigorous bidding process,
andbeating several rival banks.
5. Hospital Public Service Board BLU - Project management of the Hospital
under the Ministry of Health BLU Republic of Indonesia is one potential
project for transactional banking and retail supplier financing for
Institutional Banking, by creating the Bill Payment System Solution
for Patients, Doctors, Supplier, Pharmacists and Physician Education
Specialist.
6. Teachers Benefit Fund - is funding the benefits provided by the Government
in this regard. This is paid Quarterly by Semester according to the type
of allowance. In this regard, the Directorate of Institutional Banking
plays an active role to ensure the funds are channeled through Bank
Mandiri’s teacher benefits.
7. The Directorate of Institutional Banking is also actively associated
with the business units in the government funds program, such
as natural disasters and other programs. This participation implies
the possible role of the Directorate of Institutional Banking to spearhead
the fund management segment of the ministriesgovernment agencies.
REVIEW AND BUSINESS CONDITION
INSTITUTIONAL BANKING
35.33
Tn
Total Fund Under Management
of Institutional Banking
Annual Report PT Bank Mandiri Persero Tbk.
The Directorate of Treasury, Financial Institutions and Special Asset
Management TFS plays a primary role and contributes significantly to
the consistent performance of the Bank through managing the treasury
function in a reliable manner, progressive
TREASURY, FINANCIAL INSTITUTIONS SAM
development of international business, problem loans management and
maintaining an optimal and efficient procurement process.
The responsibilities of TFS include management of treasury activities, asset
and liability management, Financial Institutions Special Asset Management
SAM, international banking and capital markets, the development and
supervision of our foreign branches and Cayman Island branch, along with
the responsibility for handling and
CONTRIBUTION MARGIN Rp. Billion
2009 2010
2011
1,382 4,848
6,094
2009 2,000
4,000 6,000
8,000 10,000
2010 2011
TOTAL LOANS Rp. Billion
Fx Rupiah
2009 2010
2011
TOTAL DEPOSITS Rp. Billion
Fx Rupiah
2009 300
600 900
1200 1500
2010 2011
NET INTEREST INCOME Rp.Trillion
2
Fx Rupiah
2009 2010
2011
FEE INCOME Rp. Billion
996 3,087
4,934
2009 2010
2011
OVERHEAD EXPENSES Rp. Billion
259 294
396
2009 3
6 9
12 15
2010 2011
LOAN YIELD
2
Fx Rupiah
2009 2
4 6
8 10
2010 2011
COST OF LIABILITIES
1
Fx Rupiah
2009 3
6 9
12 15
2010 2011
EMPLOYEE PRODUCTIVITY - CMEMPLOYEE
Rp. Billion
4,000 8,000
12,000 16,000
20,000
1 In 2010 headquarter only. No funding at Cayman Island Branch. Other Branches are not calculated 2 In 2010 Fx loan yield only SAM and Cayman Island
REVIEW AND BUSINESS CONDITION
TREASURY, FINANCIAL INSTITUTIONS SPECIAL ASSETS MANAGEMENT
Annual Report PT Bank Mandiri Persero Tbk.
the recovery of problem loans and the procurement and management process
for Bank Mandiri’s fixed assets.
The year 2011 was marked by high volatility resulting from the prolonged
crisis in Europe. This led to a U.S. dollar liquidity crunch in international financial
markets. Within the turmoil stood the TFS Directorate’s initiative to maximize
the existing opportunities to maximize income while maintaining current levels
of liquidity and strengthening the Bank’s financial structure. Bank Mandiri also
increased revenue through optimizing higher yielding placement instruments,
further development of remittance business and trade, and implementation
of legal action including working with investors to resolve problem loans.
PERFORMANCE 2011 Although in the middle of volatile
global economic conditions, Directorate TFS reported strong performance and
provided a significant contribution to 2011 earnings generation. The
Directorate’s contribution margin increased to Rp6.1 trillion, an increase
from Rp4.8 trillion in 2010. This is mainly due to the collection on the sale of
shares of Garuda Indonesia amounting to Rp1.4 trillion. Fee-based income reached
Rp4.9 trillion, up 60 from the year 2010 which amounted to Rp3.1 trillion.
Higher revenues from remittances, foreign exchange transactions and other
operating income from collectionson written off loans contributed Rp123
billion, Rp790 billion and Rp3.2 trillion, respectively.The total volume of foreign
exchange transactions with customers reached 56.3 billion and our interbank
foreign exchange transactions reached 98 billion, implying 25.58 market-
share of domestic banking foreign exchange transactions. Remittance
volume reached 1,113,743 transactions or 13.53 of the domestic banking system.
The TFS Directorate also managed to improve and strengthen the USD-term
financing structure formedium and long term credit lines through a volume
increase. As part of our measures to strengthen the balance sheet of
Bank Mandiri and preparations for an anticipated slowdown in the global
economic recovery, the Directorate of TFS obtained a bilateral loan financing facility
from two global banks. This facility has a 5 year tenor and strengthens Bank
Mandiri’s funding structure and reflects the confidence of world financial markets
in our institution.
Another strategic step taken by Bank Mandiri focused on strengthening our
international competitiveness and to maximize China’s economic potential was
our decision to become the first bank in Indonesia to open a branch office full
branch in Shanghai, China. The Shanghai Branch of Bank Mandiri has been fully
operational since November 17, 2011 and further strengthens our international
competitiveness and supports the development of trade between China and
Indonesia.
One business line that we identified for expansion in 2011 was our
remittance business. In demonstrating its importance the TFS Directorate
invested in the development of the Independent Advanced Remittance
System. This system facilitates web-based applications utilized by
corporate clients or the remittance service provider in partnership with
Bank Mandiri to complete bulk cash disbursement remittance transactions
and 3rd party transactions with other
REVIEW AND BUSINESS CONDITION
TREASURY, FINANCIAL INSTITUTIONS SPECIAL ASSETS MANAGEMENT
banks. In addition, we have launched a new service system that enables the
delivery of foreign exchange across 127 global currencies. This represents
our commitment to always provide the excellent customer service especially in
the remittance field.
The bank continues to strengthen its presence in Indonesia and through
its efforts to support capital markets development Bank Mandiri was
designated as the payment bank for capital markets transactions from 2011
through 2015. This action solidifies the Bank’s dominance in cooperating with
approximately 67 exchange members. In addition, Bank Mandiri provides support
to the domestic capital markets through actively implementing segregated
client accounts, an important role, as it requires the bank to interact with over
55 different exchange members.
More over, the TFS Directorate’s improved performance is reflected
in the custodial services portfolio increasing from Rp144.5 trillion in 2010
to Rp161.7 trillion in 2011, representing an increase of 11.87. Bank Mandiri also
acts as custodian bank for Asset Backed Securities ABS amounting to Rp1.3
trillion in 2011, an increase of 77.5 from the year 2010 which totaled Rp750
billion. Custodian services settlement activity also increased by 12.27 from
81.40 thousand transactions in 2010 to 91.39 thousand transactions in 2011.
In trustee services, the portfolio grew 33.4 from Rp24.4 trillion in 2010 to
Rp32.5 trillion in 2011. Bank Mandiri provides additional services to the
capital markets as an escrow agent, paying agent, security agent and the
receiving bank for issuers engaging in Initial Public Offerings IPOs.
Annual Report PT Bank Mandiri Persero Tbk.
The TFS Directorate continues to work on improving the procurement
strategy by increasing effectiveness, efficiency and quality. Implementation
of strategic sourcing is one stage in the Procurement Roadmap through 2014.
With an increasing procurement volume, it is necessary to raise procurement
performance by maximizing our existing resources. The main steps are performed
by a centralized database system that records and monitors procurement and
application of supplier relationship development to establish cooperative
relationships with qualified vendors, enhanced e-Procurement and the
e-Auction process for monitoring the implementation and acceleration of all
procurement stages, increasing Owner’s Estimate benchmark assessment system
for updating the procurement pricing, legal involvement, and continuous
process and guideline improvement.
During the year 2011, the TFS Directorate was involved in the procurement process
for Bank Mandiri’s IT Strategic Initiatives including the branch opening, Business
Banking Centers 7, Independent Business 20 and Commercial Banking
Centers 3, installation of 2,434 Automatic Teller Machine ATM units,
47,000 EDC machines and opening 60 new branches throughout Indonesia, 7
units of BBC, 20 Units of Mandiri Bisnis, and development of 3 CBC networks to
support business development. The TFS Directorate has been recognized
for its success in providing the best services in the areas of treasury and
trade to the retail customer segment, corporate and financial institutions
through multiple awards from various parties including from Finance Asia as the
Best Foreign Exchange Bank, recognized by Asiamoney as the Best Domestic
Providers of FX Services as voted by Financial Institutions, the Best Overall
Domestic Interest Rates Derivatives in Indonesia, the Most Competitive and
Prompt for Spot and Forward Pricing, from Alpha South East Asia as Best FX Bank
for Corporates and FI’s and from the Asian Banker as The Leading Counterparty Bank
in Indonesia.
Year 2011 also marked by the successful recovery of written off loans that provided
a significant contribution of Rp3.2 trillion toward the increase in Bank Mandiri’s
fee based income. Overall, this resulted in the largest gain since 1998 from
written off loans. For the management of asset quality, the ratio of Bank Mandiri’s
problem loans or gross non-performing loan NPL improved to 2.18 in
December 2011 representing a modest improvement from December 2010 which
amounted to 2.21. This reflects the solid handling of problem loans at Bank
Mandiri and our successful strategy at generating resolution of legacy written
off loans.
In 2011, the TFS Directorate continued to pursue legal action against 16 sixteen
troubled borrowers consisting of 11 eleven Suspension of Payment PKPU
and 5 five execution Court Fiat. We are confident that the implementation
of legal action can help us to maximize recoveries and encourage other
uncooperative debtors to resolve outstanding issues with Bank Mandiri.
REVIEW AND BUSINESS CONDITION
TREASURY, FINANCIAL INSTITUTIONS SPECIAL ASSETS MANAGEMENT
4.93
Tn
Fee Based Income
Annual Report PT Bank Mandiri Persero Tbk.
MICRO RETAIL BANKING
CONTRIBUTION MARGIN Rp. Trillion
2
2009 2010
2011
3.18 3.16
