BNI Reports 29.8 Pct Rise in Profit

Jakarta (Antara) - Publicly traded state lender PT Bank Negara Indonesia Tbk reported a 29.8 percent on-year increase in net profit to Rp6.54 trillion in the first nine months of the year. In the same period last year the state bank reported Rp5.05 trillion in net profit. The increase in net profit was attributable to credit expansion, prudent and efficient asset management, its president director Gatot M Suwono told reporters on Friday. Gatot said the bank's outstanding credit reached Rp234.91 trillion by the end of the third quarter or an increase of 27.3 percent a year earlier. He said its net interest income grew 23.4 percent to Rp13.82 trillion from Rp11.20 trillion in the same period. He said the bank's ratio of return on asset (ROA) rose from 2.8 percent to 3.3 percent and its return on equity (ROE) rose from 19.7 percent to 21.8 percent. The bank also recorded a strong increase in Net Interest Margin (NIM) from 5.8 percent to 6.1 percent and reduced the Cost to Income Ratio (CIR) from 47.1 percent to 44 percent. Non interest income also contributed significantly to the profit, he said adding non interest income grew 24.2 percent from Rp5.75 trillion to Rp7.15 trillion. (*)