Bank NISP's profit weakens

JAKARTA (JP): Publicly listed Bank NISP reported Monday Rp 5.9 billion (about US$695,000) in net profit in the first quarter to March, down 12 percent from Rp 6.7 billion in the same period, last year.

The bank announced that the decrease in its net profit resulted from a fall in its net interest income to Rp 26.58 billion from Rp 29.89 billion in the same period last year.

According to the bank's first quarter financial report, interest and fee-based income surged 60 percent in the three- month period to Rp 163.88 billion from Rp 101.99 billion. But its interest expenses, including spending on fees and commissions, increased by about 90 percent to Rp 137.29 billion from Rp 72.10 billion.

Bank NISP, one of the banks which survived the country's massive restructuring program without financial assistance from the government, also reported a more than 40 percent increase in total funding to Rp 2.78 trillion as of March from Rp 1.9 trillion in the same month last year.

The bank's capital adequacy ratio as of March 31 was at 20.9 percent, far higher than the government's requirement of 4 percent.

The bank's net profit increased to Rp 25.15 billion in the whole of 1998 from Rp 24.18 billion in 1997. (hen).