Meanwhile, the net interest margin (NIM), an important measure of lending profitability, rose from 6 percent last year to 7.2 percent as of September.

Bank Jabar Banten president director Ahmad Irfan said the lender had avoided losses by restructuring credits while at the same time increasing new loans, by 15.7 percent year-on-year (yoy) to Rp 63 trillion.

"We have managed to quickly restructure our credits portfolio, so that we performed better than the industry," he said at a press conference in Jakarta on Friday.

The bank reduced risky loans in small and medium enterprises (SMEs) and mortgage segments, he further explained, and had focused on consumer and commercial segments, which were more productive with lower non-performing loans (NPLs).

"Our commercial loans were also driven by infrastructure credits, which increased 33 percent," Irfan said, adding that the infrastructure loans were mostly disbursed through a syndication of big banks, leading to better loan supervision and lower NPLs. (ags)

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