Lippo H1 profit almost doubles

Lippo H1 profit almost doubles

JAKARTA: Bank Lippo, the country's ninth-largest lender, said
on Tuesday that first-half profit had almost doubled on
increasing demand for credit.

Net income rose to Rp 203 billion (US$20.7 million), or Rp
51.7 a share, in the six months ending June 30 from Rp 102
billion, or Rp 25.9 a share, a year earlier, the Tangerang, West
Java-based lender said in a statement.

Lippo and rivals are benefiting as the lowest interest rates
in about seven years and an expanding economy spur demand for
credit in Indonesia, which expects growth of as much as 6 percent
this year, from 5.1 percent in 2004.

The decline in interest rates is helping spur the construction
of homes and shopping malls and more consumer spending, which
accounts for more than two-thirds of a $258 billion economy.

Lippo's net interest income, or revenue from borrowers after
deducting interest paid to depositors, rose to Rp 557 billion in
the first six months of the year from Rp 403 billion a year
earlier. -- Bloomberg