ASEAN KEY DESTINATIONS
Indonesia's lender records Jan-Sep profit up on loans, fees
Indonesia's third-largest lender, PT Bank Rakyat Indonesia Tbk, recorded a 17 percent rise in its nine-month net profit helped by strong loan growth and higher fee based income, Reuters reported Friday.
The state bank said its net profit for January-September rose to 4.24 trillion rupiah ($398.1 million) compared to 3.62 trillion rupiah a year ago.
The bank, which more than 80 percent of its lending portfolio are aimed at small and medium businesses, said its outstanding loan expanded to 151.46 trillion rupiah ($14.21 billion) as of September from 105.55 trillion a year ago, an increase of around 43 percent.
Helped by commodities boom, Indonesia's banking sector is expected to show loan growth of around 30 percent for the first nine months, spurred by strong demand from the plantation and mining sectors.
But as the central bank gradually increased its benchmark interest rate BIPG this year to control inflation, analysts are expecting loan growth to slow down towards the year end.
The bank said its net interest income rose by 18.7 percent to 14.7 trillion rupiah.
However BRI, which has a market capitalisation of $3.3 billion, said its net interest margin fell to 10.61 percent from 11.07 percent. The margin was still higher compared to its main rivals which normally report a margin of around 6 percent.
The results came before the Indonesia Stock Exchange opens. On Thursday BRI share price ended 9.43 percent higher to 2,900 rupiah each, outpacing a 5.4 percent rise in the composite index .JKSE and 6.4 percent jump in the financial sub index.