BCA forecasts 2004 profit at Rp3.1 trillion<\/p>\n
PT Bank Central Asia, Indonesia's second-largest lender by
\nassets, expects a 30 percent increase in profit this year as
\nfaster economic growth spurs borrowing by Indonesian consumers
\nand companies.<\/p>\n
\"Our profit is forecast to reach Rp 3.1 trillion (US$341.8
\nmillion) this year,\" Jahja Setiaatmadja, finance director at the
\nlender, said in Jakarta on Thursday.<\/p>\n
Bank Central Asia and other Indonesian lenders are expanding
\nloans to consumers, whose spending accounts for 70 percent of the
\n$208 billion economy.<\/p>\n
Demand for credit is expanding in an economy the government
\nforecasts will grow as much as 5.4 percent next year, up from as
\nmuch as 4.8 percent this year.<\/p>\n
The lender also expects its profit to rise to between Rp 3.4
\ntrillion and Rp 3.5 trillion next year on the higher economic
\ngrowth, Setiaatmadja said.<\/p>\n
The lender, a unit of U.S. hedge fund Farallon Capital
\nManagement LLC, had a net income of Rp 2.39 trillion last year.
\nIn the first nine months ended Sept. 30, Jakarta-based Bank
\nCentral Asia's net income rose to Rp 2.34 trillion from Rp 1.67
\ntrillion a year earlier.<\/p>\n
Shares of Bank Central Asia, which have risen 65 percent this
\nyear, rose Rp 100 or 3.7 percent to Rp 2,750 at the close of
\ntrading on the Jakarta Stock Exchange today.<\/p>\n
Bank Central Asia has targeted extending as much as Rp 10
\ntrillion in new loans this year, from Rp 9 trillion last year. It
\nexpects to make Rp 4 trillion of new loans in the second half of
\n2004.<\/p>\n
Total outstanding loans in the first nine months rose 47
\npercent to Rp 35.96 trillion. Loans to small businesses accounted
\nfor 44 percent of total loans, with loans to large corporate
\ngroups representing 42 percent, the lender said in a statement
\nlast month. -- Bloomberg<\/p>",
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"sponsor": "Okusi Associates",
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