Bank Mandiri's Covid-19-related Credit Restructuring Down 6.63% at the End of Q3 2021

The Covid-19 pandemic, ongoing since March 2020, has impacted all business sectors. This situation has also affected banking intermediation in channeling credit to the business world.

Bank Mandiri (Persero) Tbk, in its presentation, stated that restructured credit (bank-only) due to the Covid-19 pandemic reached Rp 90.1 trillion by the end of Q3 2021. This figure decreased by 6.63% compared to the Q2 2021 position of Rp 96.6 trillion (quarter to quarter/q-to-q). The amount also decreased by 0.77% compared to Q3 2020 (year on year/yoy).

Of the restructured credit, the largest value was loans given to corporations, reaching Rp 37.4 trillion (41.51%) of the total. This was followed by microcredit at Rp 17.6 trillion (19.53%), consumer credit at Rp 14.2 trillion (15.76%), commercial credit at Rp 11 trillion (12.21%), and small and medium-sized enterprise (SME) credit at Rp 9.9 trillion (10.99%).

Meanwhile, other Bank Mandiri credit restructurings (business as usual/BAU) reached Rp 64.1 trillion at the end of Q3 2021. Thus, the total credit restructuring of the state-owned bank reached Rp 154.2 trillion. This value reached 19.1% of the total credit disbursed.

By the end of Q3 this year, Bank Mandiri's gross Non-Performing Loan (NPL) ratio was 3.06%. The Loan at Risk (LaR) ratio of the state-owned bank was 10.09% without considering Covid-19 impact restructuring and reached 19.7% when including Covid-19 impact credit restructuring.