NISP reports 96% jump in net profit

JAKARTA: Publicly listed NISP Bank recorded a 96 percent increase in net profit in the third quarter of this year. Its net profit jumped from Rp 61 billion (US$7.22 million) in 2002 to Rp 119 billion in 2003.

In a media release, the bank said a 70 percent increase in net interest margin pushed profits higher.

The bank posted Rp 308 billion in net interest margin in the third quarter compared to Rp 181 billion in the same period last year.

NISP's president Pramukti Surdaudaja said the bank's third party funds also increased by 87 percent to Rp 12.33 trillion.

Some 76.5 percent of the funds were in the form of time deposits.

Loan disbursed by the bank was up 79 percent from Rp 8.52 trillion in the third quarter of 2002 to Rp 15.23 trillion in the same period this year. Some 63.3 percent of the loans were provided to companies for working capital, 15.6 percent for investments and 21.1 percent consumer loans.

The bank's capital adequacy ratio (CAR) increased to 14.98 percent in the quarter from 13.89 percent in the same period in 2002, while gross non-performing loans (NPL) were down to 1.14 percent from 1.88 percent.-- JP