The development bank of West Java and Banten provinces, Bank BJB (BJBR), reported Monday that it recorded Rp 600 billion (US$63.21 million) in net profit during the first half of 2012, or increasing by 10.29 percent from the same period last year.
“The net profit in this year’s first half was much better than last year’s figure of Rp 544 billion over the same period,” Bank BJB president director Bien Subiantoro said during an analyst meeting in Jakarta on Monday, as quoted in a media statement received by The Jakarta Post Digital.
The increased net profit was supported by net interest income which increased by 23.1 percent to Rp 1.803 trillion and operating profit of Rp 806.6 billion, or an increase of 15.5 percent.
The publicly listed bank also reaped higher third party deposits, which enjoyed a 37.5 percent increase to Rp 49.79 trillion, Bien said.
The increase in deposits was the fruit of BJB’s efforts in opening new branches in 2011 outside West Java and Banten provinces. The new branches included those in Banjarmasin, Makassar, Jakarta, Central Java and East Java.
Bank BJB also disbursed more loans in the first semester of Rp 32.71 trillion, an increase of 26.4 percent compared to Rp 25.88 trillion during the same period last year. Increased lending was achieved by disbursing more loans to small and medium enterprises, as well as companies and corporations at the national level.
Despite increasing lending, the bank managed to keep its non-performing loan ratio (NPL) at 1.4 percent with return on assets (ROA) at 2.1 percent and return on equity (ROE) at 22.6 percent.
“We prioritize the principles of being prudent and consistently maintained the NPL ratio,” Bien said. “This way we can keep the growth of the lending portfolio in line with the quality of lending being disbursed.”
Bank BJB’s position is well below the 5 percent limit set by Bank Indonesia.
Bien also said that the bank had recorded assets of Rp 61.25 trillion, or increasing by 24.2 percent compared to the same period last year at Rp 49.33 trillion.
He revealed that the bank had spent Rp 31 billion to acquire three rural banks, BPR Warung Pondang in Cianjur, BPR Garut Kota in Garut and BPR Jalan Sagak in Subang.
The bank is 25 percent publicly owned, while the remaining 75 percent is owned by the provincial administrations of Banten and West Java along with regency and city administrations in both provinces. (nvn)