Economy Slow; Mandiri Cuts Profit Target
10 July 2015 16:30 WIB
TEMPO.CO, Jakarta – State-owned Bank Mandiri has corrected its profit target for this year over pessimism of business growth. "Today's economic conditions have added pressure to banks' businesses," Mandiri president director Budi Gunadi Sadikin said on July 10.
He said that credit growth will remain stagnant in the second semester.
"Kami are revising our annual profit target because it seems unlikely that we would meet our initial target," he said.
According to Budi, there is no chance for Mandiri to score a double-digit growth in 2015. "It's hard just to survive. The least we can do is make sure that [profits] will not decline," he said.
In addition to cutting profit target, Mandiri also lowered its credit growth projection for this year. With that, Budi said the bank is also revising its non-performing loan (NPL) ratio target to 2.5 percent.
The company's financial statement available in its website showed a 20.9-percent year-on-year net profit growth to Rp8.79 trillion per May 2015.
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