BMRI 2015

More focus in Micro and retail banking

Background

Bank mandiri is a state owned bank in Indonesia that has been a biggest banking at Indonesia since monetary crisis of 1998. There were more than ten banks which were merged become one giant bank. They consisted of bank  bumi daya, bank bali,bank dagang Negara and etc. 

Mandiri has many subsidiaries such as mandiri tunas finance, bank sinar harapan bali,Bank Syariah mandiri, mandiri securities, Asuransi jiwa in health, Mandiri axa general insurance, Bank mandiri Europe limited,mandiri international remittance sendirian berhad and etc. They generally has linked synergy with others state owned company such as Pos Indonesia, BPJS and etc.

Bank mandiri was recognized as a banking company which concerned in giving loan for corporate segment, now, the company seemed to change its strategy to capture higher margin. The biggest revenue in 2014 of the company was contributed by micro & retail banking segment. There was over than 30 trillion rupiah of interest income from the sector.

Based on its annual report the company put three core of strategy to advance micro and retail segment, it consist of wholesale transaction, retail payment and retail financing.

Bank Mandiri is a state owned company that is owned by the government of Indonesia (60%) and public (40%). The company is under command of ministry of BUMN, all decisions and strategies are directed by ministry of BUMN. If Bank Mandiri is likely transformed in to retail banking, it will compete with another bank that is owned by government, BRI. The micro and retail segments are ruled by BRI, it has been the market leader for the segment in last decades.

In 2014 the interest income of the company was 62,637,942 million rupiah which was 24 % higher than interest income of 2013. The net interest margin dropped as the interest rate of central bank was relatively high; the bank has to provide higher interest rate for its customer of deposit. As the result of that, the ratio of interest income to net loan in 2014 was 15.2 % which was higher than same ratio in 2013 that was at 13.7 %.

The biggest contributor of interest income in 2014 was achieved by micro and retail segment that was amounted to IDR 20,653,671 million. The corporate segment was only able to generate interest income amounted to IDR 12,018,419 million. In the same year company’s loan to deposit ratio was 79.4 % (Net loan / Deposit ratio) that was likely lower than LDR in 2013 which was 81%. The company may expand more credit in 2014. 

BMTR : Global Mediacom

The company was founded in 1981 as conglomerate in several sectors include general trading, investment in broadcasting and media and etc. then the company established RCTI as the first private TV station in Indonesia. At recent the company seemed concern in media industry. It focused in three core of business that consists of content and advertising media, subscription based media and online media. The company almost succeeded in each segment and it has been as market leader in segments.

The three of free TV stations are mastering 31 % of total audience share in Indonesia. In 2014, the average audience share of RCTI, MNCTV and Global TV are 15.1 %, 9.6% and 6.3 % respectively. MCSKY has 74 % of total market share. Meanwhile, for segment of online media, We chat and Okezone are the market leader in each sector.

The key success person of the company is Mr. Hary Tanoesudibjo who was able to expand its business after monetary crisis of 1998. HT could capture the opportunity in the crisis and he could improve the company’s performance. HT had been appointed as the president of director of Global Mediacom. Furthermore, the president of commissioner had been filled by Mr. Rosano Barrack.

The company is owned by MNC Investama as it biggest shareholder with more than 55% share. MNC investama is an investment company that is owned by HT investment and development that is located in London, UK.

In 2014 the sales increased 6.4 % compared to sales in 2013. The biggest portion of revenue was contributed by advertising based media which were achieved its three free TV service include RCTI, MNCTV and  Global TV. In addition, the net profit of 2014 increased 25 % up compared to net profit of 2013. The increase of net profit was occurred due to the decrease of expense such as foreign exchange loss and finance charges and also the increase of revenue.

The company may focus to add its program from local content than advances the import program. The local program rose from IDR 2.102 billion in to IDR 2.981 billion.