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Jakarta Post

Bank Jatim posts double-digit profit growth for 2016

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Mon, January 9, 2017   /  03:23 pm
Bank Jatim posts double-digit profit growth for 2016 Bank Jatim agribusiness and sharia director Tony Sudjiaryanto (left to right), operational director Rudie Hardiono, president commissioner Heru Santoso, president director R. Soeroso, and corporate secretary Ferdian Timur Satyagraha pose before a press conference in Jakarta on Jan. 9. (JP/Anton Hermansyah)

East Java administration-owned lender Bank Jatim has booked Rp 1.03 trillion (US$76.97 million) a net profit for last year, an increase of 16.25 percent year-on-year (yoy).

Bank Jatim president director R. Soeroso said the net interest income grew by 10.86 percent to Rp 3.46 trillion.

"We grew because of our corporate efficiency program," Soeroso said at a press conference in Jakarta on Monday.

He added that the bank's interest expenses decreased by 13.89 percent yoy to Rp 1.36 trillion as it had successfully slashed the high interest on time-deposit accounts and added more current accounts and saving accounts (CASA) to its third-party funds.

(Read also: Bank Jatim's sharia unit ready for launch in September)

However, the bank's non-performing loans (NPLs) increased from 4.29 percent in 2015 to 4.77 percent in 2016, almost reaching the 5 percent safety margin level. The increase, Soeroso said, mainly came from small and medium enterprises (SME) of the commercial segment.

"To handle the NPL problem, we will appoint a risk [management] director and a [division] head to lead a special team to resolve the troubled loans," he said. (ags)

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