Bank Mandiri has been able to make contributions in the form of net profits, synergies of fee-based income and its subsidiaries’ collaboration in joint financing worth Rp 5.04 trillion as of the end of 2020, an increase of 8.97 percent year on year (yoy).

The contribution is equivalent to 29.47 percent of Bank Mandiri’s net profit over the period, an increase from the 16.83 percent contribution the previous year. The growth was largely caused by the 33.62 percent net profit growth recorded by Bank Mandiri’s subsidiaries.

With the growth of all major business indicators, the subsidiaries’ total assets recorded an increase of 15.07 percent to Rp 237.6 trillion. The subsidiaries also recorded an increase of 11.91 percent in total channeled credit to Rp 131.7 trillion and an increase of 17.06 percent in third-party funds (DPK) yoy to Rp 140.4 trillion.

“We are grateful that all of our subsidiaries have adopted the right business strategies with better risk management, which has enabled them to successfully mitigate the impact of the COVID-19 pandemic and achieve solid growth. This can provide good capital for Mandiri Group to cope with the challenges ahead and to participate in achieving the national economic recovery,” said Bank Mandiri president director Darmawan Junaidi.

Bank Mandiri Group’s performance is also supported by the success that the Group’s subsidiaries achieved in becoming major players in almost every existing financial business line, including sharia finance, insurance, capital market investment, treasury business and remittances, UMKM/MSME financing, vehicle ownership and venture capital.

Currently, Bank Mandiri Group covers Mandiri Sekuritas, Mandiri Investment Management, Bank Mandiri Taspen/Mantab, AXA-Mandiri Financial Services, Mandiri AXA General Insurance, Mandiri InHealth, Mandiri Tunas Finance, Mandiri Utama Finance, Mandiri International Remittance, Mandiri Europe and Mandiri Capital Indonesia.

Looking ahead, Darmawan said, Mandiri Group would adopt the development strategy of encouraging its subsidiaries to focus on their specific roles to boost performance and achieve sustainable growth and contributions.

“In essence, we’re continuing to explore opportunities to spur on the growth of the subsidiaries healthily amid the existing various challenges, for example, encouraging collaborations by taking advantage of the customer base of Bank Mandiri’s wholesale banking or its value chain network.”

On top of that, Mandiri Group’s development initiative is followed by continually making information technology innovations or digitalizing products to ensure an increase in efficiency and effectiveness in business and strengthen customers’ positive experiences with Mandiri Group, which aligns with Mandiri Group’s vision to be a primary financial partner by customer choice.

A range of financial solutions

With Bank Mandiri serving as a center of activity and innovation, customers are expected to be able to take advantage of the range of financial solutions the bank offers, including the need for car or motorcycle financing, which can either be new or used, the need for life and health insurance, the need for preserving and growing customer wealth through mutual fund products, securities trading, gold financing and venture funds. Bank Mandiri Group is also capable of fulfilling business advisory and customer corporate action roles, as well as satisfying needs related to products to ensure that customers can obtain financial facility optimally in their retirement period, in addition to many more services.

“We will continue to develop all of these solutions, for example, how the conventional format and sharia can fulfill all customer preferences. We promote a range of solutions among customers through digital channels to make customers more comfortable and, certainly, satisfied,” he said.

Another approach, which is also crucial, Darmawan said, is optimizing subsidiaries’ corporate risk management in a strict and consolidated manner so that comprehensive mitigation steps can be taken.

 “A step to optimize the risk management can help identify the emerging problems so that all of the business activities in Mandiri Group can be run smoothly,” he said.

According to him, Bank Mandiri is optimistic that the subsidiaries can make further contributions to the parent company in the near future and thus pave the way for Bank Mandiri to achieve its goal of becoming one of the best financial institutions in the country with the most complete financial solutions to meet customer needs. 

“This is one of the strengths that Bank Mandiri Group has in order to make full contribution to the Indonesian economic recovery agenda,” Darmawan said.

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