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.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam