BDNI nets record profit

JAKARTA (JP): Bank Dagang Nasional Indonesia (BDNI) announced yesterday a record net profit of Rp 190.7 billion (US$80 million) for 1996, up 36 percent on 1995.

The bank said the rise was driven by a 30 percent increase in operating income, which amounted to Rp 576.5 billion.

Of the Rp 134.3 billion increase in operating income, 42 percent came from increased interest income and the rest from fee income.

BDNI's increased earnings boosted its return on equity to 17.6 percent last year from 13.4 percent in 1995.

BDNI president Sjamsul Nursalim said the bank expected to increase its return on equity to at least 20 percent in future.

The bank said its new loan policy improved its net interest margin to 3.1 percent in the fourth quarter of last year, from 2.7 percent in the first three quarters.

Its net interest income rose 18.5 percent to Rp 364.5 billion: 29 percent came in the last quarter when the bank's net interest income rose more than 50 percent on the first three quarters.

The bank announced Thursday it would issue rights to strengthen its capital structure. (02)