BCA 2004 net profit up 33%

BCA 2004 net profit up 33%

PT Bank Central Asia's 2004 net profit jumped 33 percent to Rp
3.2 trillion (US$341 million) due to a rise in net interest
income, BCA President Djohan Emir Setijoso told reporters on
Tuesday.

Net interest income for Indonesia's second-largest bank in
terms of assets rose 25 percent year-on-year to Rp 6.6 trillion
from Rp 5.3 trillion, thanks to lower interest rates that helped
cut interest expenses.

The bank's net interest margin last year was 5.28 percent
compared with 4.93 percent in 2003.

Djohan also attributed the rise in net profit to increased
lending during the period, underscoring the bank's ability to
generate income from its intermediary services.

Outstanding loans rose to Rp 40.4 trillion as of Dec. 31 from
Rp 29.22 trillion a year earlier. Its lending ratio was at 30.6
percent, compared with 24.6 percent in the previous year.

"Our lending expansion last year contributed to higher
interest income, which in turn pushed up our bottom-line," Djohan
added.

However, the rise in these loans dragged the bank's capital
adequacy ratio down to 23.95 percent from 27.95 percent. The
figure, however, is still well above the mandatory 8 percent
minimum level set by the central bank.

BCA has said it expects lending this year to grow by 20
percent.

Farindo Investment Ltd. owns a 52 percent stake in the bank,
the Indonesian government holds a 0.5 percent stake, the public
owns 42 percent, and individual investors hold the remaining
stake. -- Dow Jones