BCA profits Rp 2.35t in nine months

BCA profits Rp 2.35t in nine months

The Jakarta Post, Jakarta

Bank Central Asia (BCA) reported on Tuesday its net profit had
increased by 40.32 percent in the first nine months of this year
to Rp 2.34 trillion (US$257.14 million) on higher net interest
income.

Net interest income rose to Rp 4.86 trillion from Rp 3.92
trillion a year earlier, boosting the bank's operating profit to
Rp 3.3 trillion.

Subsequently, the bank's net interest margin expanded to 5.25
percent against 4.92 percent in the same period last year.

Besides the improving interest margins, BCA also recorded a
cheaper cost of funds. Its year-on-year cost of funds declined to
3.98 percent compared to 7.01 percent last year.

The improving finances make the bank's capital adequacy ratio
a healthy 25.84 percent.

Reflecting its intermediary role, the bank's outstanding loans
rose by 47.36 percent from the first three quarters of 2003 to Rp
35.96 trillion -- a small compared to its total assets of Rp
143.79 trillion.

BCA's loan-to-deposit percentage improved to 28.50 percent
from 22.74 percent, while gross non-performing loans stayed at
0.67 percent.

Of the total loans, 44.29 percent went to small and medium-
sized enterprises, 42.13 percent to large corporations, and the
remainder to individual consumers.

Consumer loans continued to be the single fastest growing
portfolio, increasing at 88.09 percent on a yearly basis.

Consumers have been benefiting from the low-interest situation
-- the lowest in six years -- to finance various needs, ranging
from financing their studies to cars.

BCA is 51.30 percent owned by U.S. hedge fund Farallon Capital
Management LLC, 41.9 percent by the public, 5.03 percent by the
government, and 1.77 percent by business tycoon Anthony Salim.

The bank is the country's second biggest lender after state-
owned Bank Mandiri and has the largest number of customers,
totaling about 6.7 million account holders.

Following the announcement of its financial reports, BCA
shares notched up one point to Rp 2,300 on the Jakarta Stock
Exchange on Tuesday's close.