BRI 9-month profit soars 48%<\/p>\n
PT Bank Rakyat Indonesia (BRI), the nation's fourth-largest
\nlender, said profit rose 48 percent in the nine months ended
\nSept. 30 on rising demand for credit in an economy growing at its
\nfastest pace in four years.<\/p>\n
Profit rose to Rp 2.7 trillion (US$300 million), President-
\nDirector Rudjito said in Jakarta.<\/p>\n
The bank's profit in the January to September period last year
\nwas Rp 1.82 trillion.<\/p>\n
\"The lender benefited from the loans it made to small and
\nmedium companies,\" said Irvin Patmadiwiria, who helps manage $200
\nmillion of assets at PT Batavia Prosperindo Aset Manajemen in
\nJakarta and holds BRI stock.<\/p>\n
\"They are more prompt about repayments\" than big corporations.<\/p>\n
BRI and other lenders are benefiting from increased borrowing
\nby consumers and companies after three peaceful elections,
\nincluding the first direct presidential poll, bolstered
\nconfidence in Southeast Asia's largest economy.<\/p>\n
The $208 billion economy is forecast by the government to grow
\n5.4 percent next year and 4.8 percent this year, from 4.5 percent
\nlast year.<\/p>\n
Susilo Bambang Yudhoyono, a former general, was inaugurated as
\nthe nation's sixth president on Oct. 20, after he defeated
\nMegawati Soekarnoputri in a second-round run-off in September.<\/p>\n
Cheaper loans are helping spur the construction of homes and
\nshopping malls and fuel consumer spending, which already accounts
\nfor more than two-thirds of the economy.<\/p>\n
Banks are also benefiting because deposit rates have fallen
\nfaster than lending rates, helping make loans more profitable.
\nThe average rupiah lending rate at Indonesian banks was 15.7
\npercent, compared with an average six-month deposit rate of 6.17
\npercent, in the first nine months of this year.<\/p>\n
BRI, a state-controlled lender, has 3,931 branches across
\nIndonesia. It has targeted extending Rp 11 trillion in new loans
\nthis year. The bank made Rp 8.22 trillion of new loans last year.
\nMost of BRI's loans are to small-and medium- sized businesses.<\/p>\n
The lender expects to make Rp 3.4 trillion in profit next
\nyear, Rudjito said last month.<\/p>\n
After the announcement, BRI shares in the Jakarta Stock
\nExchange ended higher Rp 2,250 on Wednesday, up by Rp 25 from the
\nprevious day's closing. -- AP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bri-9-month-profit-soars-48-1447893297",
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