BNI's net profit slumps by 5.9%<\/p>\n
JAKARTA (JP): State Bank Negara Indonesia (BNI) announced a
\nfall in net profits to Rp 315.23 billion (US$39.39 million)
\nyesterday, a 5.9 percent decline on profits of Rp 335.13 billion
\nmade the previous year.<\/p>\n
The bank said in a statement that the decline was attributable
\nto the sharp depreciation in the value of the rupiah against the
\nU.S. dollar.<\/p>\n
\"Our 1997 performance was significantly affected by the
\ndepreciation in the rupiah. Our asset base and foreign exchange
\nincome increased substantially, and our provisioning level was
\nincreased in anticipation of a higher number of non-performing
\nloans,\" the statement said.<\/p>\n
BNI, which is publicly listed, said yesterday that it had
\nincreased its loan-loss provision by 336 percent to Rp 689.7
\nbillion in 1997, up from Rp 157.8 billion in 1996, in
\nanticipation of a prolonged financial crisis.<\/p>\n
\"In anticipation of the decline in our asset quality due to a
\nprolonged financial crisis, BNI increased its provisioning
\nlevel,\" the statement said.<\/p>\n
The bank said that nonperforming loans as a total of all loans
\nrose to 6.8 percent in 1997 from the 1996 figure of 6.1 percent.<\/p>\n
\"The increase was primarily due to the monetary crisis,\" the
\nstatement said.<\/p>\n
The monetary crisis has cut 70 percent from the value of the
\nrupiah against the American dollar. The rupiah is currently
\ntrading at around Rp 8,000 to the dollar, compared to a pre-
\ncrisis level of Rp 2,450 in July last year.<\/p>\n
The bank, however, said that total interest income rose 46
\npercent to Rp 1.43 trillion in 1997, up from Rp 966.43 billion
\nin 1996, as a result of an expansion of credit in response to the
\ndecline in the value of the rupiah.<\/p>\n
The bank's operating income before provisioning increased by
\n89.4 percent to Rp 1.16 trillion in 1997, up from Rp 614 billion
\nin 1996, the statement said.<\/p>\n
The statement also said that other operating income rose to Rp
\n956 billion in 1997 from Rp 492 billion in 1996 due to an
\nincrease in foreign exchange gains.<\/p>\n
However, bank operating expenses surged drastically, rising by
\n42.9 percent to Rp 1.20 trillion in 1997 from Rp 845 billion the
\nprevious year. The increase was due to the weak national
\ncurrency, and the rising cost of human resources and investments
\nrequired to maintain a program to automate the bank's retail
\noutlets.<\/p>\n
The bank's assets rose by 63 percent to Rp 57.17 trillion in
\n1997 from Rp 34.88 billion in 1996 as a result of the bank's
\ngross loan expansion.<\/p>\n
\"Gross loans rose by 74 percent to Rp 40.73 billion in 1997
\nfrom Rp 23.40 billion in 1996,\" the bank said.<\/p>\n
The bank collected total deposits worth Rp 29.30 billion in
\n1997 compared to Rp 19.09 billion in 1996, and its equity
\nincreased by 12.3 percent to Rp 3.17 trillion last year, up from
\nRp 2.83 trillion in the previous year.<\/p>\n
However, the bank's capital adequacy ratio (CAR) fell to 8.31
\npercent in 1997 from 11.82 percent in 1996 due to the weak
\nrupiah.<\/p>\n
\"The sharp depreciation in the rupiah brought our capital
\nasset ration down because some of our assets are held in foreign
\ncurrency while our equity is held in rupiah,' the statement said.<\/p>\n
The bank's interest margin fell to 2.75 percent in 1997, down
\nfrom 3.03 percent in 1996, due to an increase in deposit rates in
\nthe second half of the year. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bnis-net-profit-slumps-by-59-1447893297",
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