Danamon net profit increase to Rp 700b

Danamon net profit increase to Rp 700b

JAKARTA: PT Bank Danamon Indonesia made a net profit of Rp 700 billion (US$76.9 million) in the first nine months of this year, higher than Rp 577 billion in the same period last year, President Arwin Rasyid said Wednesday.

The state-owned bank's capital adequacy ratio stood at 30 percent at the end of September, with non-performing loans equal to 5 percent of total lending, Rasyid said.

Bank Danamon had outstanding loans of Rp 16 trillion at the end of the nine-month period. The bank has extended Rp 6 trillion in new loans so far this year, he added.

Indonesia is hoping to sell a 71 percent stake in Bank Danamon in November, including finding a foreign strategic investor to take control of the bank.

But the recent bomb blast in Bali, which killed more than 180 mainly Western tourists, has damped the investment climate and is likely to make the sale of Danamon difficult. -- Dow Jones