Bank Mandiri's 4Q17 profits up 211% YoY to $411m

This is on the back of lower provisions and solid non-interest revenue.

Bank Mandiri reported strong 4Q17 net profit up by 211% YoY and down 1% QoQ to $411m (Rp5.6t), UOB Kay Hian reports. The bank's earnings firmly grew, as well as its loans.

Here's more from UOB Kay Hian:

Bank Mandiri reported strong in-line 2017 earnings of $1.4b (Rp20.6t). The bank’s net profit increased strongly, mainly on the back of lower provisions (-60% YoY) and strong non-interest revenue.

Loans grew 10% YoY in 2017, driven by corporate and consumer loans. Corporate and consumer loans grew 15%/17% YoY respectively. Corporate loans were driven mostly by infrastructure projects while the strong growth in consumer loans was driven by payroll based loans (+24% YoY), auto (+27% YoY) and mortgages (+10% YoY).

2017 NPL below 3.5%, and could drop below 3% in 2018. NPL has come down to 3.5%, down 50bp in 2017, but is still the highest among peers. Write-offs amounted to a total of Rp11.6t in 2017, up slightly from Rp11.4b in 2016. Restructured loans amounted to 7% of total loans (Rp52t in 2017, up from Rp47t in 2016) with 28% of them already classified as NPLs (vs 33% in 2016). The commercial and small segment loans continued to provide asset quality challenges, and this is where Bank Mandiri saw the highest write-offs too.