Bank Mandiri pay dividend 20%

PT Bank Mandiri Tbk, Indonesia's largest lender by assets, pay IDR2.45 trillion dividends or 20% from the IDR12.25 trillion net profit last year. All state-owned banks will also pay dividend in the same percentage. The allocated dividend of 20% would strengthen the competitiveness of capital and provide wider space to distribute credit. The company targeting 20%-22% credit growth this year.

However, the paid-in dividend to shareholders from Bank Mandiri is still below PT Bank Rakyat Indonesia Tbk that reached IDR3.02 trillion, although both have the same percentage of 20% from the total net profit in 2011.

Meanwhile, PT Bank Negara Indonesia Tbk shareholders agreed to pay IDR1.165 trillion dividends or 20% from the total profits of IDR5.8 trillion in 2011.

Last week, the shareholders of PT Bank Tabungan Negara Tbk decided to pay dividends by 20% or IDR223.73 billion for the 2011 net profit valuing IDR1.1 trillion.

In term of percentage, Bank Mandiri’s retained earnings were higher at 76%, followed by BRI 75%, BTN 70%, and BNI 56%. BNI has smaller retained earnings due to higher general reserve at 10%.

Although the company held rights issue last year, its capital adequacy ratio (CAR) rapidly declined to 15.13% from 18%. It declined as the company’s credit expansion reached 27% last year. The management optimistic with dividend payment of 20% the company will be able to maintain the CAR over 12% until 2014.