Bank Mandiri Distributes Rp 6.2 Trillion in Dividends

In the Annual General Meeting of Shareholders (AGM) of PT Bank Mandiri Tbk, management announced a dividend payout of Rp 6.2 trillion. This is the largest dividend payout ever. Although net profit for 2016 decreased, Bank Mandiri's dividend actually increased compared to the previous year's Rp 6.1 trillion.

The dividend payout ratio for the 2016 fiscal year was 45 percent of the previous year's total net profit of Rp 13.8 trillion. This ratio is also the highest since 2008. Bank Mandiri is one of the government-owned banks. Amidst sluggish tax revenue, the government also relies on dividend income from state-owned enterprises (SOEs) to finance the 2017 State Budget (APBN).

Increased provisioning for non-performing loans caused Bank Mandiri's profit to plummet by more than 32 percent in 2016. However, its total assets grew again to Rp 1,038.7 trillion.