Bank Rakyat Indonesia posts $1.9-B profit in 2012

Rising loan demand pushed Bank Rakyat Indonesia's profit by 23 percent in 2012.

Net income at BRI rose to Rp 18.5 trillion ($1.9 billion) last year from Rp 15.08 trillion in 2011. Net interest income was Rp 33.5 trillion in 2011.

Many Indonesian banks have benefited from rising loan demand amid low borrowing costs in Indonesia. Indonesia’s central bank, Bank Indonesia, has refrained from raising rates in the past 12 months as it tries to spur economic growth in Indonesia.

Total outstanding loans at BRI, which gives out loans to small- and medium-sized companies, rose 23 percent to Rp 348.2 trillion last year from Rp 283.6 trillion in 2011.

BRI and its rivals such as Bank Mandiri will stand to benefit from strong loan demand in Indonesia this year.

The forecast of Indonesia’s central bank was that lending by commercial banks will grow 24 percent this year, almost the same pace it recorded last year.

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