PT Bank Permata, the country’s seventh-largest lender by assets, posted a small increase in annual profit on strong loan growth last year.
Bank Permata last week reported an unaudited 2009 net profit of Rp 486 billion ($52 million), a 5.4 percent increase from 2008’s Rp 461 billion.
Permata said loans increased 18 percent to Rp 41.2 trillion.
“These results reflect the strength of our banking model and franchise,” said David Fletcher, Bank Permata’s president director.
“Our commitment remains to be a leading force in the Indonesian banking industry and better serve the community we operate in. We will continue to improve our infrastructure and capabilities to better serve our customers while pursuing other emerging opportunities.”
Driving by lending growth, Permata’s operating income rose 15 percent to Rp 3.75 trillion, while net interest income grew 15 percent to Rp 2.96 trillion.
“Operating expenses increased just under 8 percent to Rp 2.46 trillion as the bank continues to invest in systems and processes, staff training and development,” the bank said in a statement.
It said its capital-adequacy ratio stood at 12.2 percent, while its non-performing loan ratio was 1.5 percent.
Bank Permata’s share price closed down Rp 30, or 3.4 percent, at Rp 860 on Thursday.
Bank Permata joined a number of domestic banks in posting a strong profit for last year, although its 18 percent loan growth was well above the industry average of 10 percent.
State-owned PT Bank Negara Indonesia and privately owned PT Bank CIMB Niaga both more than doubled their profits in 2009 despite experiencing slower-than-normal loan growth during the year.
BNI’s net profit grew 103 percent from the year before to Rp 2.5 trillion, while CIMB Niaga’s net profit jumped 131 percent to Rp 1.6 trillion.
CIMB Niaga’s loans grew by 11 percent in 2009, while BNI’s loans grew by 8 percent.
Analysts have said they are optimistic that the banking sector could achieve a higher rate of loan growth this year as the economic recovery gathers pace and demand for additional financing from the corporate sector begins to increase.
Small and medium-sized enterprises and consumers are also expected to remain significant contributors to loan growth as the economy recovers.