BRI H1 net profit up 13%

BRI H1 net profit up 13%

Dow Jones, Jakarta

Bank Rakyat Indonesia said on Wednesday its first-half net profit
rose 13 percent from the year-earlier period because of an
increase in interest income.

Net profit for the January-to-June period rose to Rp 1.94
trillion from Rp 1.72 trillion a year earlier, Bank Rakyat said
in a statement.

The bank's expansion in consumer lending helped fuel a 9.4
percent growth in net interest income to Rp 6.05 trillion during
the first half, from Rp 5.53 trillion a year earlier, the bank
said.

At the end of June, the bank's total outstanding loan
portfolio stood at Rp 68.95 trillion, up from Rp 55.04 trillion
at the end of June 2004.

The lending-to-deposit ratio rose to 77.06 percent, among the
highest in the banking industry, from 69.11 percent.

BRI's net interest margin stood at 12.12 percent, compared
with 12.18 percent a year earlier.

The bank's capital adequacy ratio, which is the ratio between
its own equity capital and risk-weighted assets, however fell to
17 percent at end-June, down from 19.33 percent a year ago.

The bank said the fall in the capital adequacy ratio was due
to the increase in lending.

The bank's total assets rose to Rp 113.47 trillion from Rp
99.28 trillion a year earlier.

BRI is Indonesia's fourth-largest lender by assets after Bank
Mandiri, Bank Central Asia and Bank Negara Indonesia.

BRI, which is 69.5 percent owned by the government, focuses on
promoting the country's microfinance and small business sectors.