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RETAIL BANKING | Cesar Tordesillas, Indonesia
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BII posts 61% net increase

Bank Internasional Indonesia reported a 61 percent net income increase in the first half with Rp 592 billion or $63 million.

 

The net income growth, its highest since 1997, is attributed to growth in core businesses and improved asset quality.

“The bank has also been able to record an annualized double-digit return on equity of 15.72 percent, which is the first for the bank since 1997,” said BII president director Khairussaleh Ramli.

“The improved performance demonstrates that our long journey and efforts in regaining our growth momentum have now started to bear fruit.”

Loans grew by 24 percent from a year earlier to Rp 73.5 trillion, with global wholesale banking loans accounting for 38 percent of the increase, consumer loans 36 percent, and loans for small and medium enterprises at 25 percent.

BII’s net non-performing loan level rose to 0.98 percent through the end of June, compared with 1.22 percent a year earlier. The bank’s net interest income rose 32 percent, to Rp 2.6 trillion.

Despite strong competition among banks in Indonesia, BII managed to improve its net interest margin to 5.89 percent from 5.43 percent a year before.

Its fee-based income fell by 8 percent mainly due to a reduction of loan administration fees related to its subsidiary, which consolidated its motorcycle financing with the aim of improving asset quality.

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