Indonesia’s Largest Lender Unfazed by Bad Loans

Bad loans are spiking at Bank Mandiri, Indonesia’s largest lender by assets, due to its high commodity exposure but the bank says it has a plan in place to mitigate any financial damage.

Non-performing loans (NPLs) hit a six-year high at 2.6 percent of total loans in 2015, up from 2.1 percent in 2014, the bank said in its full-year earnings report after Tuesday’s market close.

Net profit meanwhile climbed 2 percent on-year to $1.5 billion but despite beating analyst forecasts, that was still the slowest pace of growth in a decade, according to Reuters.

Following the earnings announcement, Mandiri said it will avoid exposure to mining as well as oil and gas since China’s economic slowdown has dented commodity demand.

CNBC

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.