PermataBank's net profit increases 21.6 percent in Q3
The Jakarta Post, Jakarta
PermataBank reported an unaudited net profit of Rp 223.4 billion (about US$24.2 million) in the first nine months ending on Sept. 30, representing an increase of 21.6 percent from Rp 183.7 billion in the same period last year.
The bank also recorded good momentum growth in net interest income and fee-based income while strengthening its asset position.
As of Sept. 30. PermataBank's net interest income grew by 11.6 percent, amounting to Rp 1.4 trillion from Rp 1.2 trillion, while fee-based income increased by 36 percent to Rp 360 billion from Rp 265 billion for the same period last year.
Meanwhile, operational expenses increased 9.2 percent, amounting to Rp. 1.2 trillion from Rp 1.1 trillion, while net operating profit improved 13 percent to Rp 322 billion from Rp 285 billion for the same period last year.
"Recent initiatives to improve business and operational efficiency have also shown clear results, as reflected in our latest third quarter performance," PermataBank president director Steward D. Hall said in a statement sent to The Jakarta Post.
He added that the positive result in the bank's third quarter financial performance was driven by its continued focus on the small to medium enterprise (SME) and consumer lending sectors.
Due to the challenging macro-economic condition in the first half of 2006, loans increased slightly by 3 percent from Rp 21.5 trillion to Rp 22.2 trillion. As a result, Loan to Deposit Ratio (LDR) was recorded at 76.7 percent, down from 81.8 percent recorded in the same period last year.
From a balance sheet perspective, PermataBank's total assets grew 8.6 percent to Rp 36.4 trillion from 33.5 trillion.
In third party funds, Permata Bank successfully managed an increase of 9.4 percent, amounting to Rp 28.9 trillion, compared to Rp 26.4 trillion in the same period last year due to improvements in the composition of low cost funds. Demand deposits and savings increased by 1.5 percent and 26 percent, amounting to Rp 5.9 trillion and Rp 5.5 trillion respectively. Deposits were recorded marginally lower at Rp 16 trillion compared to Rp 16.1 trillion last year.
"This represents a positive signal of the public's growing trust in PermataBank. In future, PermataBank will continue to improve the composition of its funds by increasing low cost funds such as demand deposits and savings," remarked Hall.
The bank recorded a 3.3 percent increase in Non-Performing Loans (NPL), which is higher than the previous year of around 3 percent.
"We are confident that this is at a manageable level and remains below the maximum limit set by the central bank. We will continue to monitor this with a focus on managing the risk and prudential requirements," explained Hall.
Based on the report, the bank's Capital Adequacy Ratio (CAR) increased to 12.8 percent, from 10.1 percent recorded last year, which is above the limit set by Bank Indonesia at 8 percent.
PermataBank is majority owned by a consortium of Standard Chartered Bank PLC and PT Astra Internasional Tbk with an 89 percent shareholding.