Lippo Bank's 9-month net income surges

Lippo Bank's 9-month net income surges

JAKARTA: PT Bank Lippo, an Indonesian lender controlled by a group of investors led by Austria's fourth- largest bank, said nine-month net income surged, exceeding its full-year target, as it earned more interest income and cut costs.

Unaudited net income at Lippo Bank, as the company is better known, increased to Rp 233.6 billion (US$26 million), or Rp 59.7 a share in the nine months ended Sept. 30, from Rp 27.6 billion rupiah, or Rp 7.04 a share in the same period a year earlier, the Tangerang-based lender said.

Net interest income, or revenue from borrowers after deducting interest paid to depositors, rose a fifth to Rp 643 billion in the nine-month period from Rp 537 billion, Lippo Bank said.

The lender, which is controlled by Raiffeisen Zentralbank Oesterreich AG of Austria and other investors, said earlier profit would probably reach Rp 200 billion this year, reversing a loss of Rp 516 billion in 2003. --Bloomberg