Business

BRI books record net profits

State-owned Bank Rakyat Indonesia (BRI) booked yet another record-high net profits in 2010, totaling Rp 11.47 trillion (approximately US$1.32 billion), nearly a 60 percent increase from its net profits in 2009.

This is the first time a local bank booked a double-digit net profit, with which BRI has retained its position as the top profit-maker among local banks since 2005, although in terms of assets the bank still ranks second after another state lender, Bank Mandiri.

“The causes of the profit increase are first because there was a 20 percent increase in lending; second, because of an increase in fee-based income, growing from Rp 3.3 trillion to Rp 5.5 trillion; and then third, as an impact of the change to the [financial accounting standards],” BRI finance director Ahmad Baiquni said in Jakarta on Thursday.

BRI also saw its total assets increase by 27 percent from Rp 314.75 trillion in 2009 to Rp 398.4 trillion last year, while its capital grew by 34.5 percent to Rp 36.7 trillion.

The bank’s credit portfolio also increased 20 percent to Rp 246.96 trillion in 2010, with non-performing loans down to 2.78 percent from 3.52 percent the year before, kompas.com reported.

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