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Permata, Bank Internasional Indonesia Post Stellar Income
Jakarta Globe | February 22, 2012

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Bank Permata and Bank Internasional Indonesia reported an increase in profit last year as loan demand by Indonesian consumers and corporations rose and the economy grew.

Net income at Bank Permata rose 16 percent to Rp 1.16 trillion ($128 million) last year from Rp 996.7 billion in 2010, and net interest income climbed to Rp 4.12 trillion last year from Rp 3.11 trillion in 2010, the company said in a press statement released in Jakarta on Wednesday.

Low borrowing costs and accelerated economic activity in Southeast Asia helped many Indonesian lenders post hefty profit last year.

Bank Indonesia reduced its benchmark interest rate by 50 basis points in 2011, to 6 percent in December from 6.5 percent a year earlier. The policy rate is at 5.75 percent now. The lower policy rate has helped Indonesia’s $813 billion economy expand by 6.5 percent last year, the fastest pace since 1996.

Analysts attributed the stellar performance by the country’s lenders to higher loan demand and low borrowing costs.

“Banks were doing great in 2011. The loan volume was high and the growth was also impressive,” said Janson Nasrial, an analyst with AmCapital in Jakarta. “I think it’s mainly because of the low interest rate,” he said.

Total outstanding loans at Permata rose to Rp 69.3 trillion last year from Rp 52.8 trillion in 2010, lifting its total assets to Rp 101.3 trillion last year. That made it the eighth-biggest lender by assets in 2011, according to data from Bank Indonesia.

Standard Chartered Bank and Astra International each own 44.5 percent of Permata.

Permata’s shares rose 0.7 percent to Rp 1,390 on the Indonesia Stock Exchange (IDX) on Wednesday. They are unchanged so far this year.

Meanwhile, BII reported its net income rose 45 percent to Rp 669 billion last year from Rp 461 billion in 2010.

“Corporate loans contributed the largest growth in lending,’’ the company said in a statement.

Total assets of BII rose to Rp 94.9 trillion last year from Rp 75.2 trillion in 2010.

Shares of BII fell 1 percent to Rp 485 on the IDX. They have risen 16 percent this year. The company announced the earnings results after the market closed at 4 p.m. on Wednesday in Jakarta.

Additional reporting by Francezka Nangoy