BNI Profit Grows 30%, Expects Lower Loan Growth

JAKARTA (Yosefardi) – PT Bank Bank Negara Indonesia Tbk (BBNI) booked net profit of Rp4.28 trillion in first half of this year, grew by 30.2% compared to Rp3.29 trillion in the same period of last year. The main contributors for profit growth are net interest income which increased 23% and non interest income that also rose 22%. Then profit from operation grew by 22.7% to Rp13.45 trillion.

“Our growth in operatiing profit was a result of loan expansion focusing on eight prima donna sectors which represent 70% of total BNI’s loan portfolio. We also improved evaluation on risks for loan as we focus on the growth of qualified assets,” Gatot M Suwondo, BNI’s president director, told the press on Thursday (July 25).

BNI’s net interest margin increased to 6.2% in first half of this year, compared to 5.8% in the same period of last year, helping cut cost of income ratio to 43.6% from 45.8% a year earlier.

BNI also reported its loan grew by 24% to Rp222.65 trillion from previous Rp179.44 trillion, higher than the industry growth, with gross non performing loan (NPL) declining to 2.6% from earlier 3.4%. The bank also maintained its provision at above 10%.

As a consequence of loan expansion, BNI’s capital adequacy ratio (CAR) declined to 16.3% from 16.8% in first half of 2012.

Meanwhile, BNI booked third party funds of Rp263.82 trillion, a 8.7% rise compared to previous Rp242.72 trillion. Current account saving account (CASA) increased by Rp25 trillion or 16%, which represented 67% of total third party funds.

Gatot is optimistic that BNI will continue maintain its liquidity this year for supporting loan but expects lower loan growth. The liqudity for loan will be supported by third party funds and funds from bond conversion amounting Rp1.1 trillion.

When asked about the development of BNI’s plan to divest its unit PT BNI Life, Gatot declined to comment as the divestment is considered as a specific transaction. “The (divestment) plan is still ongoing.”