Good evening, ladies and gentlemen. Welcome to PT Bank Mandiri's fourth quarter 2022 results briefing, thank you all for joining us today. My name is Laurentius, Head of Investor Relations. Together with us today we have Pak Darmawan, our CEO, Ibu Alexandra, our Vice CEO, Pak Siddik, our Chief Risk Officer, Pak Panji, our Treasury Director, Pak Sigit, our CFO, and Pak Tim, our IT Director. Before we start, I strongly encourage you to download both our presentation material and financial statement currently available on the Investor Relations webpage of Bank Mandiri. Please note that a Q&A session will be opened after the presentation, participants who wish to ask can use the Raise Hand button in the Zoom app, wait for your name to be called and your microphone unmute.
Questions typed in the Zoom chat box are not prioritized in this meeting and will likely be addressed after the call by the investor relation team. We are also happy to take questions via emails afterward, and we'll try our best to reply to your questions as soon as we can. Now to start, I would like to hand the presentation to Pak Darmawan, our CEO. Please, Pak Darmawan.
Thank you, Lau. Good afternoon, everyone. Let me start the discussion from the macro side. The left chart is Mandiri Spending Index that we developed using our very own data on credit cards and debit cards transactions. We use this as a near-term leading indicator to spending activities in the economy. Despite the high inflation in fourth quarter 2022, the overall economic activity in Indonesia remains stable and very robust last year. This is due to several strong measures taken by government in controlling core product prices such as rice, chili, and cooking oil. As shown on the right-hand graph, 2022 inflation has reached 5.51%, lower than our initial forecast of 6%. We expect inflation to fall to 3.6% level toward the end of 2023.
Moreover, we expect strong economic growth to continue this year with a forecasted GDP growth of 5% in 2023. In regards to the rate environment, we expect another 25 to 50 basis points benchmark rate hike for the year. Last year marked my second year as CEO of Bank Mandiri Group. This slide summarizes the various strategic initiatives and key focus areas of the group during the past couple of years, which has been mostly toward establishing strong foundation for the bank to move forward. This includes improving our core banking system, establishing ecosystem acquisition framework, enhancing productivities, developing digital capabilities, redirecting business attitude, reframing KPIs across the group, and many other things. The results have been quite encouraging over the past couple of years, with higher market share and higher profitability relative to the industry, as you can see on the right-hand side of the slide.
Furthermore, our capital employment remained at optimal level with CAR between 18%-20% range over the last couple of years and likely to be stable in the coming years. For 2023, the three main areas of focus for the rest of the year. This includes continued effort to maintain, if not gain market share, while keeping profitability and asset quality well. Group cost efficiencies is also a big part of this particular area of focus. Second is margin improvement and liquidity management. Amid the rising rate environment, we believe that room for further improvement exists through... steps. Overall, the... which resulted in lower funding costs and better NIM. Additionally, Bank Mandiri as a group saw a meaningful improvement in cost efficiency indicated by the failing cost-into-income ratio. Asset quality management was also a notable strength during 2022, with all indicators showing positive progress.
Lastly, on strength, our progress on digital initiatives was also very positive, indicated by the numbers of users in both Livin' and Kopra, as well as the financial gains generated by both. We have also successfully launched 241 Smart Branches, which is a new digital branch concept to further enhance our customer experience. The key challenges were rising cost of funds during the fourth quarter 2022, and non-interest income due to cyclical weakness in trading gains. In regards to Bank Mandiri full year 2022 or fourth quarter 2022 financial performance, as I have mentioned previously, the positive trend since the beginning of 2022 continued until the end of the year. In 2022, our consolidated profit grew by 47% year-on-year.
Pre-Provision Operating Profit up by 25%, supported loans and CASA growth of 14.5% and 22% respectively. The above achievements were supported by well-managed ratio, such as NIM, which improved lower cost to asset ratio and well-managed cost of credit. As a result, both ROA and ROE continued to increase last year. This slide shows the detail of our loan growth. Our loan accelerated nicely across most segments, bringing total consolidated growth to 14.5% year-on-year, in line with our strategy of ecosystem value chain growth. The higher yielding segments such as a commercial, payroll loan, consumer loan and microloan were the driver of loan growth in 2022, as you can see in the upper chart.
Specifically, the bottom left chart shows that our retail loan product growth performed well with aggregate new booking up by 24% year-on-year in 2022 compared to 2021. The increase in the new booking was through for all retail products breakdown. The bottom right chart shows that our strategy in going into wholesale ecosystem was successfully executed with most of the retail segment growth driven by our ecosystem value chain from wholesale segment. The positive loan growth trend we had came along with a positive NIM trend. As of full year 2022, our NIM recorded at 5.47%. That is higher than NIM in third quarter, second quarter and first quarter. The positive trend was true for both Bank Mandiri on a bank-only term and on a consolidated level. Following the rising rate environment, the bank's yield trended positively through asset repricing.
While on the other hand, cost of fund was relatively manageable compared to the increase in yield. As you can see on the top right chart of the slide, the spread between yield of loan and deposit cost of fund improved as a result. Furthermore, as shown in the left chart, it is worth noting that despite seeing positive NIM trend, Bank Mandiri was able to keep liquidity level healthy at around 80% on a consolidated level and even lower on a bank-only term. Strong financial performance in 2022 also came with meaningful improvement in asset quality. The left chart shows the trend in NPL formation, or in other words, loan downgrades by performing to non-performing. As you can see, the NPL formation continued to improve in 2022 with lower figure at the pre-pandemic level.
This is a result of the bank's serious commitment in managing asset quality well. As a result, NPL ratio on the consolidated level improved in 2022 to a level lower than 2% now or at 1.92%. The improvement happened across various segment, notably from commercial segment NPL ratio, which is now lower than 5%. This slide shows the trend in the non-interest income, which was up 9% in full year 2022. As you can see from the right-hand chart, the cyclical weakness in non-recurring income or trading gains was more than offset by our recurring fees and fees from subsidiaries. Let us now shift gear to the operational cost side of the equation. Much has been done, and the result so far is encouraging.
As of December 2022, Bank Mandiri was able to keep the cost to income ratio down to 38.2% on bank-only level and 42.4% in consolidated level. At efficiency is a result of several cost reduction we have made in the past couple of years, such as the numbers of branch and we have on digital. Allow me to provide a quick update on our digital products. Kopra and Livin' has booked an outstanding achievements. Livin' has been downloaded by more than 22 million times with 16 million registered users, out of which around 85% are monthly active users. Kopra has also gained more than 80,000 users with more than IDR 18,000 trillion transaction value last year.
Our digital innovation continued with the launch of about 241 Smart Branches that will be further explained by Ibu Alexandra later on. Smart Branch exchanges the concept of Mandiri branches from point of contact to the point of sales and experience, offering new and enjoyable experience to our customers. Mandiri has transformed digitally. We are now committed in our journey toward continuous and leading innovation for our customer. Last, I would like to touch on the guidance for 2023 in consolidated level. In 2023, we expect our loan to grow at the range of 10%-12%, driven by our ecosystem value chain potential in wholesale segment. NIM will be at around 5.3%-5.6%. The driver of the NIM will be from loan repricing while keeping our cost of funds stable.
Lastly, gross cost of credit at around 1.3%-1.5%. Now I'd like to pass on the presentation to Pak Sigit, our CFO. Please, Pak Sigit.
Thank you, Pak Darmawan. Ladies and gentlemen, now allow me to run through our financial highlights. In 2022, our total assets increased by 15.5% year-on-year, driven by 14.5% growth in loans, in line with our loan growth guidance in 2022. On the liability side, demand deposit grew by 31.2% year-on-year, and savings grew by 13.5% year-on-year, both combined drove CASA growth of 21.6% year-on-year. Time deposit are well-maintained at 1.29% year-on-year growth. Overall, consolidated CASA ratio stand at 73.4% as of December 2022. On the P&L side, net interest income was up 20.3% year-on-year to IDR 88 trillion in 2022, driven by the both in-interest income and interest expense improvement.
Non-interest income was up by 9% in 2022, driven mainly by recurring fees income. Total revenue grew 17.2% year-on-year to IDR 125.6 trillion, higher compared to the growth in operational costs of 8.4% year-on-year, leading to positive choice and maintain cost-to-income ratio. PPOP was 24.7% higher in 2022 in year-on-year term, while provisioning was down significantly during in 2022, which helped net profit to grow by 46.9% year-on-year to IDR 41.2 trillion. Next, on ratios. Most of the key consolidated ratio are showing positive results in 2022, starting with net interest margin, which was ended at the high end of our 2022 guidance at 5.47% or 38 point higher year-on-year.
Our consolidated cost-to-income ratio came down to 3.0% from close above 6% in 2021. Cost to asset ratio had also come down to 2.67%. Asset quality ratios are showing encouraging trend in general and credit costs were kept at very healthy level of 1.44% in 2022, ending the year with lower range of our guidance of 1.4%-1.7%. All the above led to the increase of consolidated return on asset to 2.2% in 2022, and return on equity to 18.1%. It is worth mentioning that some part of our ROE reduction is due to the right issues of the subsidiaries Bank Syariah Indonesia in fourth quarter 2022. The next slide shows the group's loan and deposit breakdown.
A growth of loan until December 2022 was led by micro segment at 15.3% year-on-year, commercial segment at 13% year-on-year, SME at 12% year-on-year, and also consumer at 11.6%. Our subsidiaries also contributed meaningfully to growth with 22.4% year-on-year. On deposit, focus, growth was largely on the cheap funding, such as savings deposit and demand deposit as you can see on the right-hand chart. Loan yield improved in 4Q 2022, as you can see on the top left chart, especially from the wholesale loan repricing. On the other hand, cost of fund increased slightly to 1.65% due to our selective repricing on our U.S. dollar deposit funding.
In general, we maintain to increase yield of loan higher than the increase in the cost of fund. At the same time, our initiative on CASA had led to maintain our funding costs. Both combined supported the uptrend in net interest margin. The bottom right shows the NIM of bank only as well as the key subsidiaries, Bank Syariah Indonesia and also Bank Mantap. With a relative stable NIM trend in both subsidiaries, we were able to improve our consolidated NIM as well in 2022 to 5.5%. Our consolidated non-interest income saw a growth of 9% year-on-year in 2022 to IDR 35.2 trillion.
This was primarily driven by the recurring fees such as loan related fees, card, Kopra, and e-channel, including fees from Livin' apps, which was up 21.2% year-on-year in 2022. On the non-recurring, cash recovery helped growth, while treasury income remained challenging. Overall, our consolidated non-interest income to total revenue remained at healthy level of 28% in 2022. On the cost side, we were able to maintain low single-digit growth and operational expenses at 3.8% year-on-year at the bank only level. The driver of the OpEx growth come from personal expense, which grew by 5.7% year-on-year. In consolidated level, OpEx grew by 8.5% due to higher operational costs booked by subsidiaries.
Overall, our consolidated cost to asset ratio was 2.7%, and cost-to-income ratio 42.4%, lower relative to historical level. I would like to now pass the presentation to Pak Siddik, our Risk Director. Please, Pak Siddik.
Thank you, Pak Sigit. Ladies and gentlemen, now please allow me to run through some updates on the asset quality trend in 2022. Overall, the indicators that you see on this slide are showing positive progress for the group. The COVID-19 restructuring will continue to decline, as shown on the top left chart, to only 4.2% of our total consolidated loan. Both subsidiaries and bank-only saw improvements. The improvement we had for NPR ratio and SMR ratio in the fourth quarter 2022 had led to lower loans at risk ratio of 11.7% consolidated. The NPL ratio, which stood at 1.92% consolidated, is well covered with 285% NPL coverage on consolidated basis.
As a result of the above, we were able to maintain our credit cost at 1.44% consolidated in 2022, ending the year at the lower end of our guidance of 1.4%-1.7% we had for 2022. For 2023 this year, we expect the improvement trend to continue, and with that also comes the potential improvement in credit cost this year, as earlier guided by our CEO. I would like to discuss about the progress of our COVID-19 restructure book positions and its risk profile in more details. Please note that the numbers shown on this table are in bank-only term. As of December 2022, the outstanding COVID restructured loans had decreased to IDR 35.9 trillion, lower compared to IDR 45.6 trillion in September 2022.
More importantly, the improvement happened across all segments in both wholesale and retail banking. Medium risk and high-risk COVID restructured loan categories remain manageable at around 48.8% and 12.7% respectively, as you can see on the table. Please note that the provision set aside for a particularly high-risk group is 44.2% as of December 2022, and the credit provision set aside for the total book is at 15.3%. We've set aside 3.2 x COVID risk rescue coverage to NPL, which is more than adequate in our view. I'd like to update you guys regarding our capital positions. In general, the CAR level was stable at 19.5% in December 2022, and well kept within an optimal level range.
On a yearly context, we intend to maintain CAR and Tier 1 ratio at around 18%-20% range in the near to medium term. I would like now to pass on the presentation to Pak Tim Utama, our Chief Technology Officer, to discuss more on our Super App Livin'. Please, Pak Tim.
Thank you, Pak Siddik. Allow me to begin my presentation on Livin' by Mandiri. If you see on the slide here, those that have been following us are very familiar with the concept of our Livin' by Mandiri, that is delivering all financial services in an integrated manner, where it is not just about banking, but moving into lifestyle or urban lifestyle. It's all done through the ecosystems that we have in Bank Mandiri through one application. As you know, there are three big components. I'm not gonna repeat that. What we can see actually working, having seen this launch, slightly over a year now in the different stages that we have. We have been successful in terms of moving our clients from a physical context or services into digital platform.
We are now on the third stage, where we will continue growing through the ecosystem that we have. To do that, we realize that we have to continuously find ways to self-disrupt by harnessing innovation to generate the real business outcomes. Why don't we move on to the next slide? I would like to allow me to describe the performance of Livin' by Mandiri, whereby, as of December 2022, Livin' has been downloaded 22 million times since its inception in October 2021 or launch of 2021. This number is the highest in the industry. Currently, Livin' users have reached 60 million, in addition, the customer transactions through Livin' application continue to show growth in line with shifting of customer behavior to use digital services.
This underline the quality of features that we continue to build that move people from physical to digital. As you can see, the transaction on Livin' has now gone up from a 1.4 x to 2.4 x higher than that of an ATM. This has, the transaction has grown by 60% year-on-year to reach almost IDR 2 billion in 2022. In terms of gross transaction value, equally encouraging, we are seeing a significant increase where the gross transaction value has reached IDR 2,435 trillion in 2022 or grew more than about 50%. It is about 3.6 times higher than that of an ATM, as you can see the comparison on the charts. If I can move on to the next slide.
Not only this contribution is actually in terms of retail transactions, but they even also support the growth of Mandiri's credit as well as third-party funds. What I can highlight there, you can see from the charts. Today, we see that 75% of the conversions made in 2022 will come from Livin', where customers can convert their last credit card transactions through Livin' without going through a branch or call center. Then to the next slide, you can see that, you know, from on the slide, the same slide, we can see that 30% of our new customers now contributed by Livin', where account openings can be done all the way through Livin' by Mandiri without going through a branch.
In terms of total net booking for multipurpose micro loans in 2022, approximately 20% is contributed through the submission of loans through Livin'. We hope that through the features that we will launch, we will continue to contribute to long-term sustainable credit and third-party fund growth. We. Next slide, I'll show you that we will continue to see opportunities. We realize that there are around eight million Indonesian citizens who live abroad and need a complete, easy and fast financial transaction solutions. We, with this, we launch on the fourth quarter of 2022 Livin' Around the World. Livin' Around the World will not only serve people that are in domestic, obviously with international services.
We will continue to make this accessible to all Indonesians wherever they are. In the fourth quarter of 2022, we have also launched, you know, ability for diaspora account opening in anywhere in the world for Indonesians, and they can use their local SIM cards in the country that they reside in. In the future, we will launch even more features where these features will be enjoyed by Indonesia citizens abroad. The one that is gonna be coming close is gonna be the ability to do cross-border remittances. Next, we also want to describe two superior features in Livin', namely Livin' Sukha and Livin' Investment.
First of all, since its launch, Sukha has offered the concept of a digital ecosystem, in collaboration with top partners in pharmacies, airline tickets, train tickets, game vouchers, and others. As for some of the highlights that as follows. The number of users accessing Sukha features grew by six million. Transaction value grew by 4 x in the fourth quarter of 2022. Furthermore, Livin' Investment makes it easy for users to buy mutual funds directly through Livin' Super App. As for some of the highlights, that we can say, Livin' Investment growth, the number of users has reached 4 x more since the launch in May 2022. The transaction value of Livin' Investment has reached IDR 3 trillion since its launch. This is all the ecosystem capability that we deliver.
Next. On this slide, we would like to show that the ability to innovate will continue. New product development is important to us. The technology that we use will allow Bank Mandiri to continually launch new features every month. In the new feature, the features that we will launch are the features of, as you see on the circle, yellow, transferring money abroad or cross-border remittances, as well as primary bonds, virtual cards, and buy now, pay later. Now I would like to pass the presentation to Pak Panji, our Treasury and International Banking Director, to discuss more on Kopra. Please, Pak Panji.
Thank you very much, Pak Tim. Ladies and gentlemen, Mandiri is a wholesale bank by DNA. We aim not only to be their main lender, but also be the main operating bank for our wholesale clients. One of the strategies is to win the wallet share of our clients by capturing the transaction. We understand to win the wallet share of our wholesale clients, we need to bring complete solution to their cash inflow, cash outflow, and also liquidity management. This is where Kopra comes, combining all the needs of our wholesale clients into one single platform. For cash inflow solution, we have Mandiri Cash Management, trade, account receivable financing, and also value chain financing. For all of the cash outflow solution, we have cash management, including payroll, tax, and utilities payment.
We also offer trade, letter of credit, and bank guarantee solution. Lastly, we offer flexibility for our clients by providing cash and notional pooling as our liquidity management solution. This is the basic purposes. Mandiri want to be the main operating bank for our wholesale clients. Which part of cash inflow solution, we give them cash management, bill collection, auto debit. We give them also trade, account receivable financing, and bill purchasing. We provide them value chain, supplier financing, account receivable, value chain financing. For the cash outflow solution, we give them cash management item, which is payroll, tax, and utilities payment. For the trade, on the cash outflow solution, we give them standby LC, trust receipt, bank guarantee. About value chain, we give them the facility of distributor financing. How about liquidity management?
We give them cash management for the cash and notional pooling, as well as on the trade. For liquidity management, we give them pre-export financing. I would like to move on to the next slide. Again, ladies and gentlemen, all of the features we mentioned before can be accessed in one single platform using sign-on system. This brings easiness of access of our clients, a truly game-changer. Before Kopra, every department in our client division, they need to have separate user ID, and this user ID not connected one with another. It makes initiating, reviewing, and approving transaction very difficult and tedious. This is why Kopra has been accepted and widely used, as it brings higher simplicity and enjoyable customer journey that we have designed for our clients.
If we see on the slide, this is what we made by single sign-on wholesale solution through Kopra, which is fulfilling and containing with the cash management, trade and guarantee, value chain, foreign exchange, billing reconciliation, custody, smart account, hospital solution. You name it, this is all here. Last fourth quarter in 2022, we also launching the mobile apps for the Kopra mobile apps and also mobile apps for the Kopra mobile token. That's it. I would like to move on to the next slide. In the fourth quarter 2022, we have launched Kopra mobile application alongside Kopra mobile token. We are the first domestic bank with mobile application feature available for wholesale clients. Kopra Mobile brings easiness in approving transaction, limit management, and online subsidiaries registration, and also bank guarantee confirmation.
Our users can also access their financial dashboard. Available to replace conventional hard token. Now, our clients don't need to bring extra device just for approving transaction. All of it can be done through their smartphone. This is what we mean by the Kopra Mobile apps. The 2021, still they could use it on the iPad, also desktop, but now they could use it through the mobile phone, and they could access through the, you know, Google Pay and also Apple Store, Google Play Store, those kind of things. We would like to move on to the next slide. I would like to share some financial highlight what is those three values come to the figure and what kind of quantitative measurement for that in the 2022.
Overall, Kopra had helped wholesale transaction in general to grow. With it, the fee income as well. This is the case across all products such as trade and guarantee, cash management, and eFX. In addition, Kopra also supports the growth of value chain transaction. All of this leads to Kopra contributed a total fee income around IDR 2.1 trillion in 2022 or up 10% year-on-year. If you could see also in this slide, the total wholesale transaction is rising from IDR 15,000 trillion to IDR 18,500 trillion. That means around $1.2 trillion equivalent. Cash management is growing also 21% to IDR 13,800 trillion. eFX still growing to IDR 209 trillion. Value chain also growing 4% to IDR 51 trillion.
You note also the transaction volume is rising. On the, you know, bottom left, 43% rising by the frequency of transaction to 885 million transaction, very close to 1 billion transaction. That is all. I would like to pass the presentation to our Vice CEO, Ibu Alexandra . Please.
Thank you, Pak Panji. Ladies and gentlemen, we have cut down more than 200 of our unproductive branches since 2019 and 2022, as we are seeing a declining trend in number of transaction per branch every year. The decrease in number of transactions are replaced by Livin as more and more of our customers moving into digital. Currently, the remaining transaction in branch are cash related, while we believe around 41% of the transactions, such as complaint handling and non-cash transaction, can be moved into Livin. As we are seeing changes in our customer behavior in branch, we also need to change our branch concept from point of contact to point of experience and sales. Ladies and gentlemen, we are introducing Smart Branch, a whole new concept of branch that offers better customer experience and also increase our productivity.
Smart Branch aims to change the focus of the branch from customer point of contact to point of sales, where our sales tap into regional ecosystem and also brings financial solution to our customers. Smart Branch also offers an enjoyable and excellent customer experience through digital innovation. For example, we offer digital-based solution that brings down waiting time meaningfully. Faster solution through CSM, CRM, and CBox also offers convenience for customers who do not want to wait. Lastly, the improvement in Smart Branch also supported from back-end system. Now, Smart Branch are equipped with new Branch Delivery System or what we call new BDS. New BDS allows all transactions in branch, Livin', and Kopra to be interconnected. It also offers more secure transaction and faster processing time. Smart Branch is divided into three types, namely Digital Box, Hybrid Branch, and Upgrade Branch.
Each type of branch provides a different experience to meet various customer needs. Each type of branch are also serving different target segment in the region. Digital Box is intended for retail customers who want fast service for simple transactions, while Hybrid Branch and Upgrade Branch can serve both retail and business customers. Upgrade Branch provides the most complete services, such as the availability of expert relationship managers and priority services. Smart Branches also provide an enjoyable and easy experience for Bank Mandiri customers. The customer journey begins before the customer comes to the branch. The customer can make a branch reservation through Livin'. When customers arrive at the branch, customers can fill out digital-based forms and personal data without using paper. The Smart Branch registration process is also safer because eKYC is carried out using a digital-based facial scanner.
For customers who only need easy solutions, such as cash withdrawals and deposits, as well as card replacement, customers can come directly to CSM and CRM machines without going through the customer service process. For customers who need a complete financial solution, such as investment, credit, or business consulting, Bank Mandiri's general bankers will be ready to serve in a comfortable lounge at the branch. Inside the Hybrid Branch and Digital Box, there's also a VBox room where customers can consult virtually with Bank Mandiri customer service for fast financial solutions. Finally, transactions at customer service and tellers can be done without queuing because the reservation can be made through Livin'. Proof of the transaction will also be entered into customer's email so that everything will be recorded.
Currently, Mandiri have around 5,400 number of frontliners and only 2,500 numbers of sales in the regions. As branches become more efficient from moving into digital-based solutions, we see the opportunity for our frontliner to do more sales role. We are changing the KPI and the focus of our teller and customer service that only focus on transaction and operational into having more sales role, offering financial solution advisory. The role of teller, customer service, and sales will also be combined into general bankers. As the number of sales role increase in branch, more and more penetration in the regional ecosystem can be tapped.
At the end, Smart Branch initiatives are expected to bring our cost-to-income ratio down further as more productivity are derived from the increase in the number of salesperson and also cost saving potential from the decrease in the number of frontliners in the branch. From our pilot of 241 Smart Branch that we converted in August 2022, we have seen an encouraging trend from asset and liability side. CASA in Smart Branch are 45.2% higher compared to the conventional branch. Average consumer loan booking are also 30%-50% higher in Smart Branch compared to the conventional branch. This slide provide Bank Mandiri ESG performance at a glance. One of the most important update is that our...
As our commitment to sustainability, we have established the ESG group in 2022, which acts as a control tower or central hub for the implementation of environmental, social, and governance practices. The ESG group is directly managed and overseen by me, the Vice CEO. On the environmental, we transformed 241 branches to Smart Branch to lessen carbon footprint. We also implemented electric vehicle as our operational cars to reduce carbon footprint. On the social aspects, we promote gender equality as shown on the slide. 52% of our employees are female, and 46% of those are in the top management level. On the governance, we have made significant investment in our data security and privacy program to ensure we operate with integrity and fairness. Our privacy policy ensures that our customers understand how we collect, store, and protect our customers' data.
For further statistics can be seen on this slide. Our sustainable portfolio has gradually increased throughout the years. As of fourth quarter 2022, about 25% of the total loan is categorized as sustainable portfolio, which consists of 51% of micro, small, and medium enterprises, 41% sustainable palm oil, and the remaining being financing toward renewable energy, clean transportation, and more. Moreover, Bank Mandiri is committed to support sustainable banking by prohibiting financing projects that endangers the environment and social. Some of the credit policy can be seen in the right-hand side of the slide. This slide provides a specific updates on our palm oil exposure. Out of the total outstanding of IDR 88 trillion in the fourth quarter 2022, about 78% is wholesale, corporate, and commercial, while 22% SME and micro, which are largely the plasma farmers.
Mandiri is actively financing more than 77,000 CPO farmers. Moreover, we also have a strong policy in growing palm oil sectors. Some of the criteria we ask in our debtors are ISPO certification requirement, no child labor, grow palm tree in single land, and NDPE policy, which is no deforestation, no peatland, and no exploitation. More of the policies can be seen in the upper right part of the slide. The bottom right chart provides an update of the mix between ISPO-certified and uncertified loans. Here, we believe we are making a good progress of currently having around 90% of our exposure in certified ones. We also take part in supporting renewable energy ecosystem. As of fourth quarter 2022, our exposure is about IDR 5 trillion in renewable energy, which increased by 17% since 2021.
Bank Mandiri also supports Indonesia's energy transition project, such as hydropower plants in Sulawesi and Sumatra, and nickel in Sulawesi as well. Through various channels, Bank Mandiri has carried out several CSR and financial inclusion initiatives that have had a positive impact on approximately 2.8 million Indonesian people through Mandiri Sahabatku program, which provides entrepreneurship and financial management training programs to more than 16,000 Indonesian migrant workers. Collaboration with fintech companies such as Amartha, Crowde, Akseleran, and Investree, with credits that have been disbursed amounting to IDR 2.1 trillion to more than 158,000 borrowers. Program for distributing banking products to all corners of Indonesia and providing job opportunities through more than 156,000 banking agents.
This is all from me, and I will hand back the presentation back to Lau for Q&A session. Thank you.
All right. Thank you very much to all speakers. We now open the Q&A session. For those that do have questions, please press the raise hand button and wait for your name to be called. I think we have the first question coming from the line of Jovent. Please go ahead, Jovent. Thank you. Hi, Jovent. We are not hearing your voice.
Thank you, Lau. Can you hear me now?
We can hear you, but please, speak a bit louder if possible. We can hear you. Thank you.
thanks. Is it better now?
Yes, it works. Thank you.
Thank you, Lau, and thank you the board of Bank Mandiri. I have two questions. My first question on the CASA growth, especially on the current account. Could you give us more color on the current account growth on a quarter-on-quarter basis? It was up like 30%. My next question is on the OpEx side. Could you give us more details why the OpEx actually went up a lot on the Q-on-Q basis? Thank you. That's all.
Thank you, Jovent. I'll let Sigit to address both questions on CASA and OpEx trend, which is pretty high on the Q- on- Q term.
Yeah. Thank you, Jovent. Yeah, as we present before that our CASA growth, Q- and- Q is a very huge increase in 4 Q because we have the big demand deposits coming from SOE. We can mention that around IDR 50 trillion in the fourth quarter coming from the two big name. Of course, this is unsustained demand deposit, but we believe that about 50% of our demand deposits should be back to sustain because we have value chain coming from the two big name. Actually, today, from the two name is still in Bank Mandiri demand deposit.
If we exclude the contribution coming from one-time number, we also still keep our CASA ratio for bank only at 76.6%. It's mean that it's still on the high level compared with 77.6%. LDR slightly increased from around 78.2% to 81.7%. Next, for the second question about our operating expenses. I usually have seasonal OpEx in 4Q. For example, we have paid partial employee bonus token in 4Q. Also, our payment to vendor on our merchant also happen in 4Q. Payment to...
Annual fees payment for OJK and LPS also increase in 4Q 2022 because we have a significant increase on deposit and also total asset. It's mean impact to our 4Q OpEx seasonality. If you see on the training costs, training costs also increase in 4Q because we have a heavy training in 4Q 2022. We believe that for first Q 2023 OpEx will be back to the normal. 4Q is seasonal and usual compared with the last year. Especially for the subsidiaries, we have a one-time cost of Bank Syariah Indonesia and Mansak.
I think it's only, especially for Mandiri Sekuritas is on at one time because, coming from OpEx, professional as paying consultant, and also professional services related to the client is very huge payment.
Thank you, Pak Sigit. Seasonality on OpEx. Maybe just to add very quickly, on a consolidated term, if you were to remove the sort of big demand deposits from the SOE entities, your CASA ratio, our CASA ratio, would have been about, you know, 70%, from the 73% reported in the fourth quarter results. Thank you.
Thank you. Now, Pak Siddik.
To add some information. Jovent, actually, If we see the movement from the 2019 to 2022, we are seeing the, you know, demand current account or demand deposit for doing transaction of our corporation is increasing. It's only voluming total volume in 2019 is IDR 141 trillion. By the end of last year, it is IDR 254 trillion. This is what we are just explaining to you now about the Kopra, which is some of the big corporation, they are having such a balance, which is getting increased year by year. Before they using the Kopra, the balance is very limited, and now it's increasing because they keep on doing the transaction through Bank Mandiri.
The balance of the demand deposit is really, you know, keep on increasing. That is one of the sources, as the, additional of the why the current account or the demand deposit is increasing.
Thank you, Pak Panji.
Thank you.
Next question coming from the line of Ibu Liny Halim from Schroders. Please, Ibu Liny.
Hi. Thank you. Congratulations for the good result, Mandiri management. Okay. I would like to ask What is management view with regards and what would Mandiri play in terms of the role for the BI export proceeds? Do you expect the U.S. dollar cost of funds to increase as a result of this? Second question with regards to margin guidance. Margin guidance seems to be quite conservative. Is it because you expect that the cost of funds will increase significantly? As you probably know, the BCA just increased their term deposit rates for one month and three months. What is management view with regards to this? Thank you.
Thank you, Ibu Liny. Pak Panji, is it okay about on the DHE? Thank you.
Okay. Basically, we are going to absorb depending on the necessity of our bank. Let's say if the demand of the foreign currency loan is increasing, then we will be getting those kind of export proceed deposit come to our bank. If there is no such placement, then we might be, you know, indifferent or we might be chasing them depending on the market price, those kind of thing. Basically, we have some, you know, new liquidity coming, then what we are thinking, we have to place it. Either we place it to the money market, bond market or the loan market or trade finance. Those kind of thing.
If there is a kind of, placement, avenue is coming, so we will be using that, then just like that, I think. Basically, we will be supporting, but again, it will be a rational, decision-making process.
Thank you very much, Pak Panji. Second question will be addressed by Pak Sigit on margin guidance and the conservativeness of the guidance. Thank you.
Thank you, Ibu Liny. Our guidance for net interest margins, you're right that we put a conservative approach. We also believe and we expect that we have room for increasing our margin next year. We have some driver for that. First, of course, we also have room to repricing our loan yield. Also we have also opportunity coming from our subsidiaries, because our subsidiaries, BSI, for example, now below compared with our margin. Our CASA ratio, we expect we can maintain our CASA ratio at high level, 75% above, and maintain our cost of fund at low level. Conservative level, we put at least we have
At our guidance, but we also have room to improve our net interest net margin in the future, around 20 to 30 basis points compared with the full year 2022, our net interest margin.
Okay, thank you.
Thank you, Sa.
Can I have a follow-up question? Will Mandiri be raising the Rupiah deposit cost of fund as well as the U.S. dollar cost of funds?
Yeah. Yes. The answer is, on the cost of funds, we are seeing an increase both in the Rupiah and the U.S. dollar, Ibu Liny. The trend so far is that we see a more sort of, you know, higher increase in the U.S. dollar, due to the liquidity situation there. There is a more sort of minimal increase on the Rupiah. In 1 of the slides, we also show that within our deposits composition, saving deposits, cost of funds was actually flat at 0.45%. The increase was primarily, you know, happening in the demand deposits and on the time deposits side.
Both Rupiah and U.S. dollar, you know, saw some increase in the cost in the fourth quarter of last year. Of course, you know, those increase were more than offset by the yield and hence the NIM improvement that we had in the fourth quarter of last year. I think that, you know, we hope that we can sort of keep that trend and that dynamic, you know, continuing in 2023.
Okay, thank you very much.
Thank you, Ibu Liny. I think one last question from the line of Yulinda.
Can you hear me?
Hardly. Could you speak a bit louder, or...
Okay. Can you hear me better now?
Yes. Yes.
Thanks, Mandiri management for the time. Congratulations on your good result. So I only have one question. So on the PPP page 33, I noticed like your corporate loan yield increased quite significant by one pp Q- on Q from 5.4% to 6.4%, which is I think much faster than your peers which focus on the corporate segment. So can you give us more color on this increase? I believe that the FX loan yield actually increased faster than the Rupiah, so whether this is driven more by the FX loan or the Rupiah loan. And can you give us for the guidance, can you give us the guidance for 2023, whether we can expect this corporate loan yield can increase further? I noticed that the level of 6.4%, it's the highest since 2Q 2020 level. If there's room to increase, how much the increase in 2023? Thank you.
Thank you, Yulinda, you know, nice catch on those numbers. Essentially, we did have a 100 basis point of increase on a quarterly yield on corporate from third quarter to fourth quarter. There is a slight one-off effect of loan payment there. Without it, the increase from third quarter to fourth quarter is going to be about 70-80 basis point. 20 basis point is the impact that came from that sort of one-off impact. If you remove that, the corporate loan yield would be up by 70-80 basis point, which is good, and that is driven by both the benchmark, the U.S. dollar repricing, and also some of the repricing that we did on the Rupiah.
The repricing on the Rupiah loans in the fourth quarter happens very, you know, meaning that there is still upside and some room for repricing, you know, in 2023. Of course, that will happen gradually. That will happen on a case by case and, you know, that will depends on the situation and conditions of our borrowers. We do hope that there is an upside.
Thanks, Lau.
Thank you. Apologies. I think we've reached the end of our analyst meeting. I will close the Q&A session. If you have more questions, more than happy to reply and service your questions after today's meeting. Thank you very much.