INDONESIA - BANKING - BII profit in 2011 increased 45 percent

www.antaranews.com - Jakarta (ANTARA News) - PT Bank International Indonesia (BII) recorded a net profit of Rp669 billion in 2011, a 45 percent increase compared to the previous year.

"Our hard work to regain the growth momentum has resulted in an increase in profits," said BII Acting Director Rahardja Alimhamzah in a written statement received here on Thursday. (source)


Rahardja said that BII`s pre-tax profit reached Rp985 billion BII, up 25 percent over the previous period.

The improvement in BII`s performance was driven by solid growth in its core business, asset quality, and operational improvements.

The banks also recorded issuing 25 percent consolidation loans from Rp53.6 trillion on December 2010 to Rp6.72 trillion at the end of 2011.

The largest credit growth contribution was seen in corporate credit, which reached 42 percent from Rp12, 2 trillion to Rp17, 3 trillion in December 2011, followed by SMEs (Small and Medium Enterprise) and commercial loans by 27 percent and consumer loans of 15 percent over the same period in 2010.

While consumer loans contributed 38 percent of total loans, the SME and commercial corporations made up 36 percent and 26 percent.

Besides credit growth, the company recorded a 17 percent increase from total customer deposits to Rp70, 3 trillion from Rp59, 9 trillion in December 2010. Savings and current account also recorded higher growth than the deposit.

Additionally, BII`s customer savings grew 28 percent to Rp17.6 trillion from the previous Rp136.8 trillion, followed by current accounts which grew 21 percent to Rp12.4 trillion from Rp10, 3 trillion over the previous year. Following this, deposits increased 13 percent to Rp40, 3 trillion from Rp35, 8 trillion.

"This has increased the Current Account and Saving Account (CASA) ratio from 40 to 43 percent per December 31, 2011," said Rahardja.

BII also noted the Loan to Deposit Ratio (LDR) consolidation remains at the expected levels of 95.1 percent by December 31, 2011, where non performing loans (NPLs) fell to 2.14 per cent gross as of December 2011.

Meanwhile, BII`s net interest margin fell to 5.22 percent by December 2011 from 5.86 percent in the previous period, as seen throughout the rest of the banking industry.

"`BII`s Pricing strategy remains in line with the overall Bank of Indonesia`s plan to support economic growth in Indonesia," said Rahardja.(*)

Editor: Heru

Source: http://www.antaranews.com/en/news/80080/bii-profit-in-2011-increased-45-percent  - Feb 23, 2012