BNI records profit, changes logo

The Jakarta Post, Jakarta

The country's third largest lender, Bank Negara Indonesia (BNI), said on Wednesday it expects to post a net profit of more than Rp 1.5 trillion (US$167.41 million) for the first semester, close to the profit it posted during the same period last year.

The bank's non-performing loans (NPLs) were expected to remain below 5 percent of total loans and BNI president Sigit Pramono said the figures would show the bank's financial restructuring process was on the right track.

In the same period last year, BNI recorded a net profit of Rp 1.55 trillion and NPLs of 3.5 percent.

Sigit said the bank would soon announce the official figures of its first-half financial year to the public.

Sigit made the comments at a ceremony to launch the bank's new logo -- part of a rebranding effort.

BNI's image was severely tarnished after a corruption probe found lending frauds totaling Rp 1.7 trillion at the bank.

The restructuring and rebranding form part of management's efforts to rehabilitate the bank, aside from organizational and administrative reforms, improving BNI's risk management system, implementing good corporate governance practices and strengthening internal control mechanisms.

Creating a new logo for the bank cost it about Rp 2.7 billion, he said.

Change was the only way to improve the bank's image and gain respect in the eyes of investors ahead of the government's planned divestment program, Sigit said.

Sigit said he hoped the divestment of a 30 percent stake in the bank would take place this year as initially scheduled.