BII's net profit up 178.5%

BII's net profit up 178.5%

Publicly listed Bank International Indonesia (BII) booked a 178.5
percent increase in year-on-year net profit for the three
quarters ending September, thanks to a significant surge in the
bank's net interest income.

Profits soared to Rp 618 billion (US$67.91 million), exceeding
the 2003 full year performance of Rp 309 billion, BII said in a
statement released on Thursday.

Net interest income increased significantly by 96.7 percent to
Rp 1.24 trillion, supported by declining interest rates, an
improved deposit mix and loan growth, while interest expenses
declined from Rp 1.9 trillion to Rp 1 trillion.

BII's return on equity improved from 17.52 percent to 36.95
percent on the back of strong earnings, while its capital
adequacy ratio fell to 21.53 percent from 24 percent due to
higher lending.

Outstanding loans grew to Rp 12.48 trillion from Rp 8.86
trillion. Consumer loans made up 30.7 percent of the bank's loan
portfolio, while corporate and commercial loans (for small and
medium enterprises) made up 37.9 percent and 31.3 percent
respectively.

Non-performing loans stood at around 3.25 percent, well below
the central bank's ceiling of 5 percent. -- JP