BJB posts Rp600B first half net profit

Bank BJB increased its net profit by 10.29 percent to Rp 600 billion or US$63.21 million the first half.

“The net profit in this year’s first half was much better than last year’s figure of Rp 544 billion over the same period,” Bank BJB president director Bien Subiantoro said during an analyst meeting in Jakarta on Monday, as quoted in a media statement received by The Jakarta Post Digital.

The increased net profit was supported by net interest income which increased by 23.1 percent to Rp 1.803 trillion and operating profit of Rp 806.6 billion, or an increase of 15.5 percent.

The publicly listed bank also reaped higher third party deposits, which enjoyed a 37.5 percent increase to Rp 49.79 trillion, Bien said.

The increase in deposits was the fruit of BJB’s efforts in opening new branches in 2011 outside West Java and Banten provinces. The new branches included those in Banjarmasin, Makassar, Jakarta, Central Java and East Java.

Bank BJB also disbursed more loans in the first semester of Rp 32.71 trillion, an increase of 26.4 percent compared to Rp 25.88 trillion during the same period last year. Increased lending was achieved by disbursing more loans to small and medium enterprises, as well as companies and corporations at the national level.

Despite increasing lending, the bank managed to keep its non-performing loan ratio (NPL) at 1.4 percent with return on assets at 2.1 percent and return on equity at 22.6 percent.

“We prioritize the principles of being prudent and consistently maintained the NPL ratio,” Bien said. “This way we can keep the growth of the lending portfolio in line with the quality of lending being disbursed.”

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