BCA profit rises 32% on lending exoansion, spurred by GDP growth

BCA profit rises 32% on lending exoansion, spurred by GDP growth

PT Bank Central Asia, Indonesia's second-largest lender by
assets, posted a 32 percent increase in 2004 profit as an
expanding economy spurred companies and individuals to borrow
more.

Unaudited net income last year was Rp 3.15 trillion (US$339
million), Finance Director Jahja Setiaatmadja said in Jakarta.
The lender earned Rp 2.39 trillion in 2003 profit, according to
previously announced figures.

"The figure was encouraging, and the lender has good profit
potential as it has low cost of funds," said Fendi Susiyanto, who
helps manage the equivalent of $1.62 billion at BNI Wealth
Management, including shares of PT Bank Niaga and PT Bank Rakyat
Indonesia.

"We are waiting for the right time to add this stock to the
portfolio."

Bank Central Asia, a unit of U.S. hedge fund Farallon Capital
Management LLC, and other Indonesian lenders are expanding loans
to consumers, spending by whom accounts for 70 percent of the
$208 billion economy.

Demand for credit is expanding in an economy the government
forecasts will grow as much as 5.5 percent this year, up from 5.1
percent last year.

"Our loans rose, boosting interest income and raising profit,"
said Setiaatmadja.

The lender added Rp 11 trillion in loans in 2004, beating its
Rp 8 trillion target, he said.

The 2004 profit was in line with Bank Central Asia's forecast
for Rp 3.1 trillion of net income. Profit may rise by 10 to 20
percent this year, Setiaatmadja said.

"We will extend Rp 8 to Rp 10 trillion in new loans, excluding
loans to infrastructure projects," Setiaatmadja said.

Indonesia is trying to encourage investment in public works
such as power plants, toll roads and airports this year to help
boost the economy, create jobs and rebuild infrastructure damaged
by the Dec. 26 tsunami.

Bank Central Asia's shares rose Rp 75, or 2.4 percent, to Rp
3,150 at the closing of trading on the Jakarta Stock Exchange.
-- Bloomberg