BRI net profit rises 46%

BRI net profit rises 46%

JAKARTA: State-owned PT Bank Rakyat Indonesia said its first quarter net profit rose 46 percent on year due to an increase in net interest income.

The nation's fourth-largest bank booked a net profit of Rp 1.1 trillion, up from Rp 752 billion a year earlier, Bank Rakyat President Director Rujito told reporters on Thursday in Jakarta.

Net interest income rose 52 percent on year to Rp 2.58 trillion from Rp 1.69 trillion, thanks to an increase in lending which grew to Rp 49.96 trillion at end-March from Rp 47.59 trillion at end-December.

Bank Rakyat lends mainly to farmers and small businesses and has only a small portion of corporate loans, analysts said.

During the period, 83 percent of its new lending was given to small businesses, Rujito said

He said the bank plans to put aside 26 percent of 2003 net profit, or Rp 660 billion, for dividend payment.

Bank Rakyat's assets at end-March were at Rp 94.503 trillion, compared with Rp 85.59 trillion a year earlier.

The bank's capital adequacy ratio as of March 31 was at 23.99 percent, above Bank Indonesia's requirement of 8 percent. -- Dow Jones