BNI's Q3 profit down 24 percent
The Jakarta Post, Jakarta
Bank Negara Indonesia (BNI) reported a 24 percent drop in its unaudited net profit during the first nine months ending Sept. 30, as its costs spiraled upward along with a recent rise in inflation and interest rates.
The bank posted a net profit of only Rp 1.76 trillion (US$176 million) in the third quarter, as compared to Rp 2.32 trillion in the same period last year.
"The decline in profit was the result of lower earnings, still high reserve requirement fees, as well as rising operational costs," it said in a statement released on Monday.
With the reduced profit, BNI joins several other major banks in the country that also reported disappointing third-quarter performances as a result of the recent surge in inflation and interest rates.
Despite the unfavorable circumstances, however, BNI still booked a higher interest income of Rp 5.38 trillion during the period, as compared to Rp 5.12 trillion last year.
Its operating income also improved by 48 percent to Rp 1.30 trillion.
"This rise in income, however, has still failed to improve our net interest margin, as the central bank's interest rates have been rising as well, while we cannot yet raise our own credit rates," the bank said.
BNI's outstanding loans, meanwhile, had continued to grow as well, by 22 percent to Rp 63.19 trillion, on the back of strong commercial loans to the corporate sector.
"We will continue our intermediation commitment by disbursing loans selectively according to our prudent risk management system," it said.
The bank's total deposits also rose slightly by 9 percent to Rp 111.77 trillion, which along with the growing loans, increased its capital adequacy ratio to 16.5 percent.
BNI's loan-to-deposit ratio, meanwhile, also improved to 56.54 percent from 40.49 percent.
BNI, the country's third-largest bank by assets, is 99 percent owned by the government and 1 percent by the investing public.
The bank's shares on the Jakarta Stock Exchange ended 5.5 percent higher at Rp 1,330 on Monday.