Danamon profit to exceed target

Danamon profit to exceed target

JAKARTA: PT Bank Danamon Indonesia expects its net profit this year to exceed its target of Rp 850 billion (US$94.8 million), Bank Danamon President Arwin Rasyid told reporters Wednesday.

"We expect to book between Rp 900 billion and Rp 1 trillion in net profit for the full year of 2002," Arwin said. Last year, the bank booked a net profit of Rp 723 billion.

He said the higher-than-expected net profit this year is mostly due to the forecast increase in the bank's loans to Rp 18 trillion by the year-end from a target of Rp 10 trillion.

Arwin said the bank, which is 99.35 percent owned by the government, expects to have its loan-to-deposit ratio, or LDR, this year to rise by up to 48 percent from around 35 percent last year.

He said he expects the bank's loans next year to reach Rp 28 trillion, with its loan-to-deposit ratio targeted around 56 percent.

As of Sept. 30, the bank's consolidated net profit rose to Rp 725.26 billion from Rp 576.82 billion a year earlier. -- Dow Jones