REPUBLIKA.CO.ID, Publicly listed state lender PT Bank Mandiri posted Rp18.2 trillion in net profit last year or a 17.4 percent increase from the previous year's level of Rp15.5 trillion.

President of the country's largest bank in assets Budi Gunadi Sadikin attributed the increase in net profit to 21.5 percent expansion of its outstanding credit to Rp472.4 trillion with low non performing loan ratio of 0.58 percent.

Budi described the bank's performance as encouraging saying credit continued to increase and it is stronger in its role as intermediacy agent.

He said an increase was recorded in credit for all segments, citing credits grew 18 percent for the micro, small and medium enterprises (UMKM) to Rp64.6 trillion.

Credits for micro business alone surged 42.3 percent or the highest to Rp27 trillion in 2013, he said here on Monday.

He said Bank Mandiri also takes part in providing People's Business Credits (KUR) with government guarantee scheme.

The number of KUR clients grow 40.4 percent to more than 295,000 in 2013 with maximum limit in credits of Rp14.45 trillion.

"The increase in the bank's outstanding credit resulted in a swell in the bank's assets to Rp733.1 trillion in 2013 from Rp635.6 trillion in the previous year," Budi said.

He said the increase in its net profit was also attributable to a 18.6 percent growth in fee based income to Rp14.5 trillion in 2013.

A strong growth was also recorded in the third party funds held by the bank to Rp556.3 trillion in 2013 from Rp482.9 trillion in 2012.

Cheap funds including deposits and giro funds accounted for Rp359.96 trillion of the third party funds with savings making up Rp236.5 trillion,-- an increase of Rp34.4 trillion or 17 percent.

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