Permata pre-tax profit up 62% on strong growth in loans

The Jakarta Post , Jakarta | Thu, 02/21/2008 12:08 PM | Business

Publicly listed lender Permata Bank booked a 62 percent gain in its pre-tax profit thanks to strong growth in loans and non-interest-based incomes.

The pre-tax profit increased from Rp 455.2 billion (around US$49.5 million) in 2006 to Rp 736.8 billion last year, according to a media statement sent Wednesday.

The profit increase was attributed mainly to 11 percent growth in loans, bringing the bank's loan-to-deposit ratio (LDR) to 88 percent, far higher than the national average LDR of 69 percent.

In 2006, the bank's LDR stood at 83 percent.

Outstanding loans as of Dec. 31 last year reached Rp 26.5 trillion, with the focus still on SME and consumer lending services.

With the profit increase, Permata generated a net interest income of Rp 2.3 trillion in 2007, 15 percent higher than in 2006. Its fee-based income grew 87 percent from Rp 554.3 billion in 2006 to Rp 1 trillion.

"I am delighted with Permata's 2007 performance. These strong results show that the investments we have made in our people, process and systems are delivering results," president director Stewart D. Hall said in the statement.

Hall also said the Bank would expand its branch network to 10 new cities.

Permata's total assets were up 4 percent to Rp 39.3 trillion as of the end of 2007. Its capital adequacy ratio (CAR) -- which compares a bank's capital against its risk-weighted assets, including loans -- stood at 14 percent, well above the central bank's requirement of 8 percent. (rff)

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