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BRI posts 20 percent rise in 2010 H1 net profit
After releasing its first-half financial statement, Indonesia’s second-largest lender, Bank Rakyat Indonesia (BRI)
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fter releasing its first-half financial statement, Indonesia’s second-largest lender, Bank Rakyat Indonesia (BRI). said Friday it expected full-year net profit to climb 15-20 percent to Rp 8 trillion on strong loan growth and higher fee-based income.
The bank posted Rp 4.3 trillion (US$472 million) in first-half net profit, up 22.28 percent from Rp 3.53 trillion in the same period last year.
The state-owned lender focuses on small- and medium-sized businesses and disbursed Rp 226.24 trillion in loans in the first half, up 22.56 percent from last year’s Rp 184.6 trillion. The bank saw 2010 lending grow 25 percent.
The bank’s gross non-performing loans climbs to 4.27 percent versus 3.70 percent last year. The central bank has asked for banks to manage their gross non-performing loan to under 5 percent.
BRI president director Sofyan Basir said the NPL rate was “nothing to be concerned about”.
“We tried to hold our loan disbursement due to high demand for medium-sized loans. But this class is fragile, so we will focus on restructuring, fix our internal system and create layers of security,” Sofyan said.
BRI deposits also grew 18.35 percent from Rp 216.35 trillion to Rp 256.05 trillion.
Faster growth in lending than in deposits helped increase BRI’s loan-to-deposit ratio (LDR) to 88.35 percent in the first half, from 85.33 percent in the same period last year.
BRI’s net interest margin (NIM) in the first half increased from 9.29 percent last year to 9.40 percent. “But we want to lower the NIM to 9.2 percent by year-end,” Sofyan said.
In line with increased NIM, the bank’s net interest income also grew 23.97 percent from Rp 10.93 trillion last year to Rp 13.55 trillion.
BRI, which has a total market capitalization of Rp 122 trillion, reported total assets of Rp 319.94 trillion in the first half, up 19.72 percent from last year at Rp 267.24 trillion.
Shares in BRI fell 1.49 percent following the earnings release on Friday, closing at Rp 9,900 per share as the composite index dropped 0.88 percent to 3,069.28. BRI shares have risen about 30 percent so far this year, outperforming the broader Indonesia composite index 22 percent jump. (est)
