BII profit soars by 191.7 percent<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Publicly listed Bank Internasional Indonesia (BII) reported on
\nFriday a 191.7 percent jump in first-half net profit from the
\nsame period last year.<\/p>\n
The bank said that profit soared to Rp 425 billion (US$46.91
\nmillion) in the six-month period ending June 30.<\/p>\n
BII, which is majority owned by South Korea's Kookmin Bank and
\nSingapore's investment company Temasek, attributed the higher
\nprofit to the lower cost of funds and higher lending.<\/p>\n
A number of listed banks have also reported higher revenue on
\nlower cost of funds as a decrease in the central bank benchmark
\ninterest rate has reduced expenses for depositors, while keeping
\nthe lending rate for borrowers at a healthy level.<\/p>\n
BII's gross lending grew by 52.2 percent to Rp 12.37 trillion
\nin the first semester of this year from Rp 4.24 trillion in the
\nsame period last year.<\/p>\n
Government recapitalization bonds dropped sharply from Rp
\n14.71 trillion to Rp 5.4 trillion. Thus, the bank's lending
\nportion in total assets was up from 23.5 percent to 35.2 percent,
\nthe bank said.<\/p>\n
The government injected bonds into ailing banks following the
\nlate 1990s financial crisis to help shore up their capital. The
\nrecipient banks receive interest from the bonds.<\/p>\n
Third-party funds in the first semester was slightly up to Rp
\n28.71 trillion from Rp 27.57 trillion in the first six months of
\n2003, BII said.<\/p>\n
It added that its capital adequacy ratio stood at 21.87
\npercent, well above the central bank's minimum requirement of 8
\npercent. Nonperforming loans were at 2.97 percent, well below the
\nmaximum limit of 5 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bii-profit-soars-by-1917-percent-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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