BRI books 15 percent net profit in 2009

JAKARTA: State-run Bank Rakyat Indonesia (BRI), Indonesia's second largest bank by assets, said its net profit in 2009 might have increased up to 15 percent from Rp 5.96 trillion (US$.637.72 million) booked in the previous year.

"Profits grew well in 2009, increasing between 10 percent and 15 percent on average," BRI finance director Sudaryanto Sudargo said Wednesday after a meeting with the House of Representatives' Commission VI overseeing state firms.

He added that lending grew by 22 percent last year despite the fact that companies borrowed less amid the global financial crisis.

BRI estimates lending will expand 20 percent this year. "The composition of lending will still be 80 percent for micro-, small- and medium-scale enterprises and 20 percent for corporate loans," said Sudaryanto.

The bank may sell subordinated bonds in the second half of this year, Sudaryanto said. - JP