Bank Central Asia (BCA), the country's second largest lender by assets, recorded a 49.5 percent growth in lending in the first half of the year, compared to the first semester of 2007.

As of the end of June, the bank has disbursed Rp 95.6 trillion in loans, BCA vice president Jahja Setiaatmadja told a press conference on Thursday.

Loans to corporations still contributed the bulk of the loan portfolio, Jahja said.

"Corporate loans rose by 64.5 percent to Rp 40.9 trillion on the back of higher demand from companies in telecommunications, plantations, mining and agriculture."

"Consumer loans meanwhile rose by 55.9 percent to Rp 17.3 trillion and small and medium enterprise (SME) loans increased by 33.2 percent to Rp 37.4 trillion during the first semester," Jahja said.

In the consumer loan sector, credit for housing increased by 47.5 percent to Rp 9.4 trillion and for vehicles by 95.4 percent to Rp 5.8 trillion.

"Demand was higher for housing and vehicle loans since we have not yet made an upward adjustment in our interest rates in line with the central bank's benchmark rates."

Adjustments will be made in the second semester, Jahja said.

The bank's loan interest rates currently range from 12 to 14 percent and deposit interest rates from 6 to 8 percent.

With expansion, the bank's loan to deposit ratio (LDR) stood by the end of June at 50.2 percent, an increase from 40.1 percent in the same period last year, but still lower than the national average of slightly over 60 percent.

Expansion in lending helped push net profits up in the first semester by 11.6 percent to Rp 2.4 trillion.

With the projected adjustment in BCA interest rates, lending growth could slow in the second semester, Jahja said.

The bank has over seven million customers served by 815 branches across the country. (rff)

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