Thu, 10 Mar 2005


Danamon to extend up to Rp15t in loans

JAKARTA: PT Bank Danamon, Indonesia's fifth largest lender, plans to extend as much as Rp 15 trillion (US$1.6 billion) in loans this year, 74 percent more than last year, even if lending rates increase, a bank official said on Wednesday.

The new lending will help the bank post a 25 percent increase in operating profit this year, Vera Eve Lim, Danamon's chief financial officer, said.

Danamon had an operating profit of Rp 3.49 trillion in 2004, the company said on Feb. 16.

"The loan target has taken into account the possible increase in interest rates," Lim said.

Danamon, 66 percent owned by Temasek Holdings Pte., the Singapore government's investment agency, and Deutsche Bank AG, and other Indonesian lenders have benefited as consumers have taken advantage of interest rates at six-year lows to borrow more to buy homes and cars. -- Bloomberg