BCA expects lending growth to slow

BCA expects lending growth to slow

JAKARTA: PT Bank Central Asia (BCA), Indonesia's largest bank
by market value, said lending growth was expected to slow next
year because of higher borrowing costs.

The company expects to lend between Rp 8 trillion (US$794
million) and Rp 10 trillion next year, down from more than Rp 11
trillion this year, chief financial officer Jahja Setiaatmadja
said in Jakarta on Friday.

Bank Indonesia, the central bank, has raised its benchmark
rate five times since July to curb inflation, which surged to a
six-year high in October, after President Susilo Bambang
Yudhoyono's government more than doubled fuel prices. Higher
borrowing costs may lead to slower demand for cars and mortgages,
hurting earnings at lenders.

BCA, 51.2 percent owned by San Francisco-based hedge fund
Farallon Capital Management LLC, on Oct. 24 said profit for the
nine months to Sept. 30 rose 12.4 percent to Rp 2.63 trillion as
it boosted lending. -- Bloomberg