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Bank Negara Indonesia, the nation’s fourth-largest bank by assets, said profit surged 41 percent in the first half with loans to both consumers and companies up.

Net income at the Jakarta-based lender rose to Rp 2.73 trillion ($319.4 million) in the January to June period from Rp 1.93 trillion a year earlier, said Gatot Suwondo, BNI’s president director. Net interest income rose 5 percent to Rp 6.09 trillion. Total outstanding loans at BNI rose 21 percent to Rp 152.9 trillion to the end of June from Rp 126.2 trillion in the same period last year.

The country’s lenders benefited from a low borrowing cost environment amid rising loan demand in a growing economy. The economy, which expanded 6.5 percent in the first quarter this year, is forecast to grow even more in the second quarter, the central bank said earlier this month. The Central Statistics Agency (BPS) is set to announce second-quarter growth figures early next month.

“The effort to improve business had resulted in quite an extraordinary result in almost all business lines,” Gatot said, with consumer loans posting the biggest increase because of a pick-up in home purchases.

Consumer lending climbed 34 percent, taking the portfolio to Rp 27.33 trillion. Home borrowing, at Rp 14.79 trillion, accounted for 54 percent of total consumer loans.

“In consumer lending, we still want to focus on mortgages,” Gatot said, adding that the sector had a lot of potential, especially with continued improvements in incomes and standards of living.

Darmadi Sutanto, BNI’s director of retail and consumer banking, said the bank was targeting their mortgage business to the “first-time home buyer,” who was less speculative than those wanting to purchase condominiums in the nation’s capital. “A lot of our young people are ready to start a family,” he said. “They are ready to buy their first home.”

Darmadi said mortgage loan growth for the second half was expected to be at the same pace as in the first half, at 49 percent.

In other areas of borrowing, corporate lending was up 25 percent to Rp 56.84 trillion, while lending to small businesses rose 17 percent to Rp 31.65 trillion.

BNI’s net interest margin — the percentage point difference from interest it gets from loans and the rate paid to depositors — was 5.9 percent from 5.8 percent a year earlier.

Gatot said BNI expected its total lending to grow by 17 percent to 20 percent this year, which was lower than the central bank’s target because BNI was trying to copy the same business model as rival Bank Mandiri.

Bank Indonesia forecast lending by the country’s commercial lenders to grow by 24 percent this year, at almost the same rate as 23.8 percent in 2010.

BNI’s capital adequacy ratio — a measure that assesses the lender’s financial strength — stood at 17.2 percent at the end of June, higher than the required minimum 8 percent ratio set by the central bank.

Shares in BNI gained 1.3 percent to Rp 4,025 on Monday. The shares have gained 3.9 percent this year.