Good results: Bank Rakyat Indonesia (BRI) president director Asmawi Syam (center) speaks with BRI vice president director Sunarso (second left) and board of directors members Susy Liestiowaty (left), Haru Koesmahargyo (second right) and Gatot Mardiwarsisto after announcing the state lenderâs financial report for the first half of 2015 at the BRI headquarters in Central Jakarta on Friday
State lender Bank Rakyat Indonesia (BRI) remains the country's most profitable bank so far this year despite only a slight growth in its first half net profit.
The publicly listed bank reaped Rp 11.86 trillion (US$877.52 million) in net profits, only 1.16 percent higher year-on-year (yoy) than the Rp 11.72 trillion pocketed last year. BRI also booked outstanding loans amounting to Rp 503.61 trillion as of June, growing 9.69 percent compared to last year's Rp 459.13 trillion. This trend was mainly boosted by micro segment loans that jumped up 15 percent to Rp 165.83 trillion. Retail lending expanded 11.8 percent to Rp 187.3 trillion and corporate loans grew 2.8 percent to Rp 131.5 trillion, while middle segment loans dropped by 2.9 percent to Rp 18.9 trillion as of June.
BRI president director Asmawi Syam lauded his bank's performance navigating the country's economic slowdown and an unfavorable global economy.
'Amid the country's slowing economy and pressures from the global economic condition, BRI can still book the highest profits compared to other Indonesian banks,' he said.
Previously, several major banks had issued their first half financial reports, most of which reflected the country's economic slump.
State-owned lender Bank Negara Indonesia (BNI) saw its net profits plummet by 50.8 percent to
Rp 2.43 trillion during the first half of this year, while the country's largest lender by assets, Bank Mandiri, saw its net profits grow 3.5 percent to Rp 9.9 trillion. Another state lender, Bank Tabungan Negara (BTN), pocketed Rp 831 billion in net profits, soaring 54.25 percent yoy.
The country's largest private lender, Bank Central Asia (BCA), reaped Rp 8.5 trillion in net profits, growing around 8.8 percent on an annual basis.
Despite booking the highest profits in comparison with other banks, BRI saw its gross non-performing loans (NPL) ratio rise from 1.97 percent to 2.33 percent, mostly contributed to by agricultural business companies.
BRI chief financial officer and director Haru Koesmahargyo said that the increase in NPL had eroded the lender's profits even though it pocketed a significant rise in revenues.
BRI booked total revenues of Rp 46.25 trillion, or 19.51 percent yoy higher than last year's Rp 38.7 trillion. As much as 86.4 percent of the revenue was attributed to net interest income (NII) amounting to Rp 39.9 trillion, which expanded 18.4 percent yoy.
'Our creditors did not carry out the expected payments, causing us to increase the provisions for loan loss coverage from Rp 16.4 trillion last year to Rp 16.6 trillion,' he said during a press briefing at the lender's office in Central Jakarta on Friday, adding that the amount was 141 percent from the NPL.
He further stated that BRI planned to raise the provisions to 150 percent next year, saying that the number was ideal for the lender.
Haru added that BRI now expected single digit growth in profits and 12 to 13 percent in lending growth by the year's end.
On Wednesday, BRI opened its branch office in Singapore, and aims to provide at least $100 million of syndicated loans in its first year of operation to Indonesian companies that are seeking offshore funding. Currently, the lender has 10,479 offices nationwide and five offshore offices. The company will launch its first ever floating bank services in August. (prm)
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