How a Shrinking Head-Office Loss Kept the Headline Number Positive
The Q3 2024 post closed on a bank whose standalone profit growth had accelerated for a second straight quarter to roughly 11.82% YoY, even as the bank-only Loan-to-Deposit Ratio» (LDR) took its sharpest single-quarter jump yet, to a record 93.15%. Mandiri's audited consolidated financial statements for the year ended December 31, 2024, close out that story - and the full-year, segment-level view they disclose (something not filed alongside any of the previous four quarters this backfill has covered) tells a materially different story than the quarterly headline numbers alone would suggest.
Start with the headline: consolidated net income attributable to owners for FY2024 was Rp55,782,742 million, up just 1.31% YoY from FY2023's Rp55,060,057 million - a collapse from FY2023's own 33.7% growth rate (see the FY2023 post), and implying Q4 2024 standalone net income (FY2024 minus the already-reported 9M2024 figure) of Rp13,765,388 million, down roughly 13.9% YoY from Q4 2023's Rp15,996,514 million - the acceleration this backfill tracked through Q1-Q3 2024 didn't just stall in the fourth quarter, it reversed into an outright decline.
Now look underneath it, at the segment note the audited annual report discloses for the first time in this backfill. Bank Mandiri reports its business across Corporate Banking, Commercial Banking, Government Institution Banking, Retail Banking, Treasury & International Banking, and a Head Office/corporate-center bucket that absorbs centralized costs and unallocated items, plus three subsidiary buckets (Sharia, Insurance, and other financing/remittance/securities units). Every one of the five core banking segments' profit fell in 2024: Corporate Banking net income fell -25.19% YoY (Rp19.15 trillion → Rp14.32 trillion), Retail Banking - historically the single largest profit contributor - fell -18.99% (Rp44.07 trillion → Rp35.70 trillion), Commercial Banking fell -18.03%, Government Institution Banking fell -5.90%, and Treasury & International Banking fell -68.20% (Rp4.92 trillion → Rp1.56 trillion). Combined, these five segments' profit fell by Rp18.31 trillion YoY.
The headline number didn't reflect any of that because the Head Office segment's own reported loss narrowed by Rp12.79 trillion (from -Rp26.99 trillion to -Rp14.20 trillion) and the consolidation eliminations/adjustments line improved by a further Rp5.44 trillion - together more than offsetting the operating segments' decline. This isn't the underlying business getting stronger; on this segment note's own numbers, every part of the bank that actually makes loans and takes deposits got weaker in 2024. See below for what's actually driving the Head Office swing.
The Prescription
Mandiri's real problem this year isn't the headline profit number - it's that the bank grew its loan book aggressively enough to push bank-only LDR to a record 98.04% while every lending segment's own profitability fell, and management's own segment disclosure shows exactly where: Retail Banking, the segment that has carried this bank's earnings for years, lost nearly a fifth of its profit even as its loan book kept growing (+11.0% YoY, the slowest of any core segment). The operational move is to slow wholesale-driven loan growth until deposits and margins catch up, not celebrate a stable-looking consolidated number that a Head Office cost-allocation shift is doing the real work of holding together. A bank whose loan book is +19.4% YoY against deposit growth of +7.7% is one that's spending its balance sheet strength to buy growth its segments aren't actually monetizing profitably right now.
What it should stop doing: treating consolidated net income as the number that tells the real story. This backfill has spent five straight quarters watching consolidated and standalone profit figures accelerate while flagging the LDR and CASA» tension underneath them (see Q1, Q2, and Q3 2024) - and the first time a segment breakdown actually became available, it showed the underlying business was worse than the headline number, not better. Mandiri doesn't disclose this segment breakdown every quarter (the FY2023, Q1, Q2, and Q3 2024 filings all lacked it), so a reader relying on the quarterly deck alone has no way to see this coming until the next annual report.
Key Financial Metrics
FY2024 vs FY2023 (P&L, consolidated), and December 31, 2024 vs December 31, 2023 (balance sheet, consolidated)
FX: IDR 16,095.00 = USD 1 (December 31, 2024 close, per the bank's own filed exchange-rate disclosure); IDR 15,397.00 = USD 1 (December 31, 2023 close, per the same disclosure).
| Metric | FY2024 (IDR) | FY2024 (USD) | FY2023 (IDR) | YoY |
|---|---|---|---|---|
| Net interest, sharia & premium income, net ("Net Revenue" equivalent) | Rp104,277,733M | ~$6.48B | Rp98,009,620M | ✅ +6.4% |
| Operating Income (Income From Operation) | Rp76,059,595M | ~$4.73B | Rp74,641,563M | ⚠️ +1.9% |
| Net Income (attributable to owners) | Rp55,782,742M | ~$3.47B | Rp55,060,057M | ⚠️ +1.3% |
| EPS (basic, full year) | Rp597.67 | ~$0.0371 | Rp589.93 | ⚠️ +1.3% |
Operating cash flow for FY2024 was -Rp79.56 trillion (~-$4.95B), against fixed- and intangible-asset capex of Rp8.54 trillion, a deterioration from FY2023's -Rp69.80 trillion operating cash flow (on Rp5.02 trillion capex) and consistent with a bank whose loan growth (+19.4% YoY) is again outrunning its deposit growth (+7.7% YoY, see below). As with any bank, this swing reflects balance-sheet growth (more loans funded than deposits taken in) rather than a free-cash-flow deterioration. Total cash and cash equivalents at year-end is Rp244,038,123M (~$15.16B), essentially flat versus Rp243,801,693M at the start of the year.
| Balance sheet metric | Dec 31, 2024 (IDR) | Dec 31, 2024 (USD) | Dec 31, 2023 (IDR) | Change since Dec 2023 |
|---|---|---|---|---|
| Total Assets | Rp2,427,223,262M | ~$150.81B | Rp2,174,219,449M | ✅ +11.6% |
| Loans (gross, Kredit) | Rp1,623,216,612M | ~$100.87B | Rp1,359,832,195M | ⚠️ +19.4% |
| Total Deposits (customer deposits + temporary syirkah funds, consolidated) | Rp1,698,896,916M | ~$105.57B | Rp1,576,949,619M | ⚠️ +7.7% |
| Total Equity (attributable to owners) | Rp283,796,429M | ~$17.63B | Rp260,852,784M | ✅ +8.8% |
Equity's +8.8% growth already absorbed a Rp33.04 trillion cash dividend (60% of FY2023's net income, paid in March 2024 - the same payment that drove Q1 2024's reported equity drop) - meaning retained-earnings accumulation net of that payout was strong enough to still grow book value for the year, even with FY2024's profit growth stalling.
FY2024 consolidated net income grew just 1.31% YoY - down from FY2023's 33.7% pace - and the annual report's segment note shows every core banking segment's profit actually fell; only a shrinking Head Office loss kept the total positive. See How a Shrinking Head-Office Loss Kept the Headline Number Positive above.
Key Operational Metrics
Bank-only ratios are from the bank's own filed Statement of Financial Ratios (FY2024 vs FY2023); consolidated figures are computed directly from the filed consolidated statements, marked "computed"
- Loan-to-Deposit Ratio (LDR) - bank-only: 98.04%, up sharply from 86.75% a year earlier and up from Q3 2024's 93.15% - a 4.89 percentage-point jump in the fourth quarter alone, even sharper than Q3's own 2.67-point jump, and the LDR's sixth consecutive backfill-high in a row. Consolidated: 95.55% (computed: Rp1,623,216,612M loans ÷ Rp1,698,896,916M deposits, incl. sharia), up from Q3's computed 92.48% and from 86.23% a year earlier.
- CASA ratio - bank-only: 80.31% (computed: Rp1,065,573,072M demand + saving deposits ÷ Rp1,326,887,854M total customer deposits), up from Q3 2024's 78.37% and from FY2023's 79.40% - the sequential CASA decline the Q3 2024 post flagged as worth watching reversed in the fourth quarter rather than extending.
- NIM» - bank-only: 4.93%, down from 5.25% a year earlier.
- NPL» ratio - gross: bank-only 0.97%, down from 1.02% a year earlier - asset quality kept improving even as the LDR climbed to a record.
- NPL ratio - net: bank-only 0.33%, up from 0.29% a year earlier.
- CAR (capital adequacy)»: bank-only 20.10%, down from 21.48% a year earlier - a fourth straight year-over-year CAR decline this backfill has tracked (see Q1, Q2, Q3 2024), though still comfortably above regulatory minimums.
- ROA» - after tax: bank-only 3.59%, down from 4.03% a year earlier.
- ROE» - after tax: bank-only 24.19%, down from 27.31% a year earlier and down from Q3 2024's 25.21%.
- Cost-to-Income Ratio» (CIR): bank-only 35.04%, worse both YoY (34.36% a year earlier) and versus Q3 2024's 32.12% - consistent with the segment-level cost reallocation flagged below.
- Operating Expenses to Operating Income (BOPO): bank-only 56.46%, worse than 51.88% a year earlier.
- Not available in this filing: a results presentation or earnings call transcript - the annual report's own audited statements are the only document filed for this quarter, same as every quarter since Q1 2024.
Every Core Banking Segment, Compared
Bank Mandiri's audited consolidated financial statements report six primary operating segments - Corporate Banking, Commercial Banking, Government Institution Banking, Retail Banking, Treasury & International Banking, and a Head Office/corporate-center bucket - plus three subsidiary buckets (Sharia, Insurance, and other financing/remittance/securities units). This is the first time in this backfill that a segment-level income statement has actually been filed alongside a quarter's numbers.
| Segment | FY2024 Net Income | FY2023 Net Income | YoY | FY2024 Gross Loans | YoY (loans) |
|---|---|---|---|---|---|
| Corporate Banking | Rp14,321,827M | Rp19,145,026M | ⚠️ -25.2% | Rp515,387,333M | +25.8% |
| Commercial Banking | Rp7,151,518M | Rp8,725,402M | ⚠️ -18.0% | Rp292,862,407M | +23.1% |
| Government Institution Banking | Rp3,022,925M | Rp3,212,595M | ⚠️ -5.9% | Rp96,337,445M | +32.4% |
| Retail Banking | Rp35,698,894M | Rp44,068,215M | ⚠️ -19.0% | Rp397,443,310M | +11.0% |
| Treasury & International Banking | Rp1,564,576M | Rp4,920,822M | ⚠️ -68.2% | Rp8,748,909M | +22.1% |
| Head Office (corporate center) | -Rp14,199,504M | -Rp26,992,715M | ✅ +47.4% (loss narrowed) | n/a | n/a |
| Subsidiary - Sharia | Rp6,895,627M | Rp5,703,744M | ✅ +20.9% | Rp275,170,624M | +15.7% |
| Subsidiary - Insurance | Rp1,376,234M | Rp1,510,033M | ⚠️ -8.9% | n/a | n/a |
| Subsidiary - other (financing, remittance, securities, venture capital) | Rp3,559,230M | Rp3,424,872M | ✅ +3.9% | Rp46,933,649M | +11.6% |
Retail Banking is where the story actually lives. It's still the single largest profit contributor by a wide margin (Rp35.70 trillion, more than double Corporate Banking's Rp14.32 trillion), but its profit fell furthest in absolute terms (-Rp8.37 trillion) of any segment, and its loan book grew the slowest of the five core segments (+11.0%, against Government Institution Banking's +32.4% and Corporate Banking's +25.8%). That combination - largest segment, weakest loan growth, steepest absolute profit decline - is a mix-shift signal: Mandiri grew its balance sheet fastest in the wholesale/institutional segments this year, exactly the segments whose funding this blog has flagged as pushing bank-only LDR to a record (see above), while its historically most profitable retail engine both grew slower and earned less.
Treasury & International Banking's -68.2% collapse is the sharpest single-segment move, though it's the smallest core segment by loans (Rp8.75 trillion, under 1% of the loan book) - a segment whose profit is driven by trading/FX/fixed-income positioning rather than lending volume, so a decline this size says more about a weaker year for treasury income than about the bank's core lending economics.
Sharia banking is the one segment that actually grew profit meaningfully (+20.9%), continuing to outgrow the conventional bank's core segments on both the loan-growth and profit-growth axes - a subsidiary contributing an increasing share of group earnings while every conventional lending segment weakened.
A cost reallocation, not a segment recovery, explains most of the swing
The Head Office segment's Rp12.79 trillion narrower loss is not, on this note's own numbers, a story of the corporate center becoming more efficient - it's a story of costs moving off the Head Office line and onto the operating segments. Head Office's own allocated operating expense (salaries, G&A, and other costs) fell from Rp26.65 trillion in 2023 to Rp11.54 trillion in 2024 - less than half. Over the same period, every operating segment's own allocated opex rose sharply: Retail Banking's more than tripled (Rp6.20 trillion → Rp20.77 trillion), Corporate Banking's more than doubled (Rp0.88 trillion → Rp2.20 trillion), and Commercial and Government Institution Banking both roughly doubled. This is consistent with an internal cost-allocation methodology change between the two years, not with operating segments genuinely absorbing more real costs from actual business activity. See Beyond the Usual for why this matters for how to read the segment table above.
Bank Mandiri Shares Fell 5.8% for the Year, Even as Profit Technically Grew
The Q3 2024 post closed with shares at Rp6,925 after a 12.6% quarterly rally. That rally fully reversed in the fourth quarter: shares fell to Rp6,700 at end-October, Rp6,150 at end-November, and Rp5,700 by December 30, 2024 - a -17.7% decline for the quarter alone, more than erasing Q3's gain. Against December 2023's Rp6,050 close, December 2024's Rp5,700 is down 5.8% for the full year (no stock split has occurred since the 1:2 split that took effect April 2023, so both prices are on the same nominal, actually-quoted basis) - the first calendar-year decline in this backfill, even though consolidated net income still technically grew (+1.31%) over the same period. Over this post's roughly two-year price window, shares ranged from a low of Rp4,975 (January 2023) to a high of Rp7,250 (March 2024), a peak-to-trough swing of about 31% - the market spent 2024 first re-rating the stock upward on Q1's initial earnings deceleration, then walking that re-rating almost entirely back as the LDR kept climbing and Q4's profit reversal became visible.
Beyond the Usual
A segment-reporting methodology shift makes every core segment's profit decline look worse than it may actually be
The segment note disclosed for FY2024 - the first full segment income statement filed in this backfill - shows every core banking segment's profit falling YoY, but the note itself also shows Head Office's allocated operating expense falling by more than half while every operating segment's allocated opex rose sharply (see above). That pattern is consistent with an internal cost-allocation methodology change between 2023 and 2024, which means the segment-level profit declines reported this year aren't necessarily a clean read on each business line's actual economic performance - some or all of the apparent Retail, Corporate, and Commercial Banking profit decline may be an artifact of costs shifting onto those segments' books rather than those businesses genuinely weakening. This is exactly the kind of comparative-basis quirk that makes a single year's segment table worth treating cautiously until a second year of this same disclosure exists to confirm whether the pattern holds on a consistent basis.
The bank's related-party loan exposure - unusually large for a state-owned bank - grew again
Bank Mandiri's bank-only loan book classifies Rp272,166,019 million, or 20.76% of bank-only gross loans, as extended to related parties as of December 2024, up from 19.92% (Rp216,274,701 million) a year earlier. This is a much broader definition than the 0.56%-of-loan-book figure this blog found in a narrower legal-lending-limit disclosure back in 9M 2023 - Indonesian accounting standards treat other state-owned enterprises as related parties for a majority state-owned bank like Mandiri, so a large related-party book here reflects the bank's structural role as the government's primary lender to itself, not a governance concern in the way related-party lending would be at a privately controlled bank. Still, a related-party loan share approaching a fifth of the book, and growing, is a genuinely interesting structural fact about this bank's lending mix that a reader wouldn't get from the headline numbers alone.
The COVID-era restructured loan book kept shrinking sharply
The audited financial statements' loan-restructuring footnote shows the specific COVID-19 restructuring scheme's outstanding balance falling to Rp14.20 trillion at December 2024, down 45.3% from Rp25.97 trillion a year earlier - continuing the steady wind-down this backfill has tracked since the FY2023 post, and now down from a peak of Rp96.49 trillion in June 2021 per the report's own historical disclosure. Total loan restructuring across all schemes (not just COVID-19) also fell, from Rp96.98 trillion to Rp89.20 trillion.
The primary Rupiah reserve requirement kept easing
Mandiri's disclosed average primary Rupiah reserve requirement fell to 5.21% for 2024, from 7.32% a year earlier - a Bank Indonesia-set ratio, not a bank-specific choice, but one that continues to free up Rupiah liquidity that would otherwise sit non-earning at the central bank, helping explain how the bank funded a year of loan growth that outran deposit growth by more than 11 percentage points.
Currency-risk exposure stayed below its year-ago level, though it ticked up from Q3
Mandiri's disclosed Net Open Position (overall) was 1.00% at December 2024, up slightly from Q3 2024's 0.93% (see Q3 2024 post) but still down from 1.28% a year earlier - a modest sequential increase that remains well inside Bank Indonesia's regulatory ceiling and consistent with the gradually-normalizing pattern this backfill has tracked through 2024.
Coverage at a Glance
| Metric | FY2024 | FY2023 | YoY | Why it matters |
|---|---|---|---|---|
| Net income (attributable to owners) | Rp55.78T | Rp55.06T | +1.3% | Down from FY2023's 33.7% growth pace - the sharpest deceleration in this backfill |
| Bank-only LDR | 98.04% | 86.75% | +11.3pp | A record high, up 4.89pp in Q4 alone - the sharpest single-quarter jump yet |
| Combined core-segment net income (5 banking segments) | Rp61.76T | Rp80.07T | -22.9% | Every real lending segment's profit fell; only Head Office/eliminations kept the total positive |
| Bank-only CASA | 80.31% | 79.40% | +0.9pp | Reversed Q3's flagged sequential decline |
| Share price (Dec 31 close) | Rp5,700 | Rp6,050 | -5.8% | First full-year share-price decline in this backfill, despite technically-positive profit growth |
Target Valuation Range
Market cap Rp532.00 trillion (~$33.05B), ~1.9x P/B, ~9.5x P/E. Bottom line: Mandiri is roughly fairly valued to modestly cheap on a pure multiples basis - the ~9.5x P/E and ~1.9x P/B compressed further than bank-only ROE's own decline (24.19% from 27.31%) would strictly justify, suggesting the market is pricing in real concern about the LDR spike and the segment-level weakness this post's segment note surfaced, not just the slower reported growth rate.
Using FY2024 net income of Rp55,782,742M, EPS of Rp597.67, and the post-split share count of 93,333,333,332:
| Market cap → book value | Q4 2024 |
|---|---|
| Share price (period-end) | Rp5,700 |
| Shares outstanding | 93,333,333,332 |
| Market capitalization | Rp532.00 trillion (~$33.05B) |
| Total equity (book value) | Rp283,796,429M |
| Book value per share | Rp3,040.32 |
| Peer-multiple sanity check | Q3 2024 | Q4 2024 | Change |
|---|---|---|---|
| P/B | 2.4x | 1.9x | down |
| P/E | 11.1x | 9.5x | down |
P/E: ~9.5x, using FY2024 EPS of Rp597.67 against the Rp5,700 close on December 30, 2024. P/B: ~1.9x, using book value per share of approximately Rp3,040.32 (Rp283,796,429M total equity attributable to owners ÷ 93,333,333,332 shares). Market capitalization: approximately Rp532.00 trillion (~$33.05B). That's a cheaper setup than the Q3 2024 post's ~11.1x P/E and ~2.4x P/B - the fourth quarter's share-price decline outran the earnings deceleration, unlike Q3 itself (where the multiple expansion tracked ROE's rise almost proportionately). A real DCF remains the natural next step, but two things would need to be true for the current price to be a genuine opportunity rather than a fair re-rating: the LDR spike to 98.04% needs to be a temporary wholesale-funding push rather than the start of a structural funding constraint, and the segment-level profit declines flagged above need to be substantially a reporting-methodology artifact rather than genuine deterioration in Corporate, Commercial, and Retail Banking's actual economics - something only a second year of this same segment disclosure can confirm.
PT Bank Mandiri (Persero) Tbk's 2024 Annual Report, including its audited consolidated and parent-entity financial statements for the year ended December 31, 2024, via Bank Mandiri's investor relations page.