BCA profit rises 32% on lending exoansion, spurred by GDP growth<\/p>\n
PT Bank Central Asia, Indonesia's second-largest lender by
\nassets, posted a 32 percent increase in 2004 profit as an
\nexpanding economy spurred companies and individuals to borrow
\nmore.<\/p>\n
Unaudited net income last year was Rp 3.15 trillion (US$339
\nmillion), Finance Director Jahja Setiaatmadja said in Jakarta.
\nThe lender earned Rp 2.39 trillion in 2003 profit, according to
\npreviously announced figures.<\/p>\n
\"The figure was encouraging, and the lender has good profit
\npotential as it has low cost of funds,\" said Fendi Susiyanto, who
\nhelps manage the equivalent of $1.62 billion at BNI Wealth
\nManagement, including shares of PT Bank Niaga and PT Bank Rakyat
\nIndonesia.<\/p>\n
\"We are waiting for the right time to add this stock to the
\nportfolio.\"<\/p>\n
Bank Central Asia, a unit of U.S. hedge fund Farallon Capital
\nManagement LLC, and other Indonesian lenders are expanding loans
\nto consumers, spending by whom 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 5.5 percent this year, up from 5.1
\npercent last year.<\/p>\n
\"Our loans rose, boosting interest income and raising profit,\"
\nsaid Setiaatmadja.<\/p>\n
The lender added Rp 11 trillion in loans in 2004, beating its
\nRp 8 trillion target, he said.<\/p>\n
The 2004 profit was in line with Bank Central Asia's forecast
\nfor Rp 3.1 trillion of net income. Profit may rise by 10 to 20
\npercent this year, Setiaatmadja said.<\/p>\n
\"We will extend Rp 8 to Rp 10 trillion in new loans, excluding
\nloans to infrastructure projects,\" Setiaatmadja said.<\/p>\n
Indonesia is trying to encourage investment in public works
\nsuch as power plants, toll roads and airports this year to help
\nboost the economy, create jobs and rebuild infrastructure damaged
\nby the Dec. 26 tsunami.<\/p>\n
Bank Central Asia's shares rose Rp 75, or 2.4 percent, to Rp
\n3,150 at the closing of trading on the Jakarta Stock Exchange.
\n-- Bloomberg<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bca-profit-rises-32-on-lending-exoansion-spurred-by-gdp-growth-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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