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