BNI projects 15% growth in profit for this year
BNI projects 15% growth in profit for this year
The Jakarta Post, Jakarta
After recovering from a major lending fraud, and then tripling
its net profit, publicly listed Bank Negara Indonesia (BNI) has
projected a modest growth in its pre-tax profit of 15 percent for
this year.
"Apart from projecting an increase of 25 percent in loan
disbursements, we also project 15 percent growth in our net
profits," BNI president director Sigit Pramono said on Wednesday.
The state bank plans to increase its loan disbursements to Rp
71 trillion (US$7.6 billion) from Rp 57.9 trillion last year.
"We will try to increase our consumer lending to 25 percent of
our total loans and reduce our corporate loans," he said.
From total lending last year, which rose 24.7 percent compared
to 2003, consumer loans grew from 12.9 percent to 18 percent, but
on the other side corporate loans declined from 39.2 percent to
35 percent.
BNI, Indonesia's second largest bank in terms of assets,
booked a net profit of Rp 3.14 trillion, an increase of 378
percent from the Rp 829 billion figure in 2003.
In 2003, the bank's net profit fell after it was hit by a
high-profile fraud.
The prime suspect in the fraud, Maria Pauline Lumowa, remains
at large. Authorities have named 19 suspects in the case, which
centered on the unlawful disbursement of some Rp 1.7 trillion of
export credits by BNI's Kebayoran Baru branch to PT Petindo and
Gramarindo Group.
Two key suspects -- Edi Santoso, a former customer service
head at BNI's Kebayoran Baru branch, and director of PT Petindo
Perkasa John Hamenda -- were sentenced to life imprisonment and
20 years in jail respectively for their involvement in the scam.
Meanwhile, another key suspect, Adrian Waworuntu, is currently
on trial. Prosecutors have demanded that he be sentenced to life
imprisonment and fined Rp 1 billion, plus made to make
restitution payments of Rp 6.8 billion. The verdict will be
delivered on March 30.
BNI vice president director Arwin Rasyid said, "We cannot
project similar growth this year because last year's 300 percent
growth was in comparison to year 2003, where we had the letter of
credit case in the Kebayoran Baru branch."
Last year, BNI undertook several corporate initiatives that
had speeded its recovery. The bank recorded an increase in its
total assets from Rp 131.5 trillion in 2003 to Rp 136.5 trillion
in 2004.
BNI also reported that its net interest revenue -- interest
earned from borrowers after being deducted by that paid to
depositors -- in 2004 reached Rp 6.88 trillion, or up 37.6
percent from the Rp 5 trillion a year earlier.
Last year, BNI recorded a lower capital adequacy ratio (CAR)
of 17.3 percent from 18 percent in 2003, and a lower non-
performing loan (NPL) ratio of 4.6 percent from 5.69 percent in
2003. The bank's loan to deposit ratio stood at 55.1 percent.
Sigit said the decrease in the bank's CAR was partly due to
funds that had to be set aside for reorganization to minimize the
incidence of fraud and scams.
In a bid to maintain its CAR at a healthy 15 percent, the bank
was also awaiting approval from the central bank to issue up to
US$300 million in subordinated bonds this year.
BNI was also waiting for the implementation of its plan to
acquire state-owned Bank Tabungan Negara before it conducted a
secondary public offering, Sigit said. (003)