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Indonesia's Bank Mandiri expects lower provisions in 2017 -CEO
April 12, 2017 / 12:10 PM / 5 months ago

Indonesia's Bank Mandiri expects lower provisions in 2017 -CEO

JAKARTA, April 12 (Reuters) - Bank Mandiri, Indonesia’s biggest bank by assets, expects its provisions to sharply drop to 16-18 trillion rupiah ($1.2-1.4 billion) this year as it steps up restructuring and asset sales, its chief executive told Reuters on Wednesday.

Its provisions stood at 24.6 trillion rupiah at the end of 2016, more than double the 12.0 trillion a year earlier.

Mandiri also sees its gross non-performing loans dropping to 3 percent of total loans this year from 4 percent at the end of 2016, CEO Kartika Wirjoatmodjo said in an interview.

The state-controlled bank saw inflows of almost 30 trillion rupiah ($2.3 billion) from Indonesia’s tax amnesty scheme, Wirjoatmodjo said, adding that some of the funds are being converted into assets such as bonds.

Mandiri reported a 32 percent fall in 2016 net profit to its lowest in five years.

$1 = 13,274.0000 rupiah Reporting by Eveline Danubrata and Gayatri Suroyo; editing by Jason Neely

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