PT Bank Mandiri (Persero) Tbk posted a net profit of Rp. 17,119 trillion throughout 2020,  a 37.71% drop from the previous year, at Rp. 27,482 trillion.

"This condition is due to the low net interest income and net premium of around 5.27% to Rp58.022 trillion from Rp61.248 trillion in 2019," said Bank Mandiri President Director Darmawan Junaidi in an online presentation of Bank Mandiri's earnings, Thursday (28/1 ).

He added Bank Mandiri's net profit in 2020 was supported by business entities' performance that contributed around 22.5% to the company's profit.

"We are optimistic that Bank Mandiri's performance will rebound this year," he added.

Bank Mandiri also recorded a sharp spike in Bank Mandiri's CKPN (Allowance for Impairment Losses) costs of around 89.66% to Rp22,896 trillion up to the period ending December 2020 from the previous year of only Rp12,072 trillion. Operating costs were recorded to have increased by around 1.42% to Rp40.647 trillion from Rp40.076 trillion.

Meanwhile, lending during 2020 was recorded at Rp 871.3 trillion, or a growth of 7.08%.

"We are implementing a prudent and selective lending policy to targeted customers by considering sectors that are still potential and whose recovery is faster. As a result, we were able to maintain credit quality so that the consolidated NPL ratio was still good at 3.09%, "he explained.

Meanwhile, Bank Mandiri's third-party fund collection grew 12.24% to Rp1,043 trillion.

"The growth in deposits is still better when compared to the banking industry, which grew by 11.1%," he added.

Until the end of December 2020, Bank Mandiri recorded total assets of Rp237.6 trillion, a growth of 15.1%.