BDNI's net profit up

JAKARTA (JP): Publicly-listed Bank Dagang Nasional Indonesia (BDNI) posted a Rp 69.1 billion (US$29.4 million) net profit for this year's first quarter, up 76.3 percent on the same period last year.

The company said yesterday its operating income rose 67.4 percent to Rp 193.5 billion because of significant growth in net interest income and fee income.

Net interest income was Rp 136.2 billion, accounting for 70.4 percent of total operating income. This was a 56.5 percent rise.

The rise was because of a new loan pricing policy implemented last October which raised the bank's net interest margin from 2.7 percent during last year's first nine months 3.4 percent.

Fee income, which was Rp 57.3 billion during the period, increased by 100.3 percent.

The surge in fee income was driven by foreign exchange transaction fees which rose 267 percent, reflecting higher trading activity in the Indonesian foreign exchange market.

The company is aiming for a Rp 350 billion net profit this year, up more than 83 percent on last year. (bnt)