PT Bank Internasional Indonesia Tbk.
(BII) ended the year on a solid note. Loans grew 68% (gross) to
Rp22,098 billion, compared to the previous year. In the light of the
volatile market conditions fueled by high inflation and interest rates,
this loan growth is commendable considering the containment of
NPL’s. On the back of this loan growth interest income
increased by 50% to Rp4,443 billion, while net interest income grew by
42% to Rp2,345 billion from Rp1,646 billion last year. Discounting the
one off gains from sales of marketable securities in 2004, other
operating revenues increased by 30% supported by increases in fees and
commissions. Total operating expenses rose by 29% to Rp2,212 billion
from Rp1,708 billion.
On a consolidated basis net
profit after tax for 2005 ended at Rp725 billion compared with Rp822
billion in previous year or a decline of 12%. However, discounting the
one off gains on marketable securities of Rp340 billion earned in 2004,
the 2005 net profit based on core business grew by 51%.
Ho, BII’s President Director stated, “We are
pleased that our strategy was tested during both the benign market
conditions in the first half of the year and the significantly more
difficult market in the second half of the year and has proven to be
robust as evidenced by our strong business growth. We were able to
contain our NPL (gross) to 2.88% from 4.01% last year despite our
strong loan growth, reflecting prudent and conservative credit
measures.” “Going forward in 2006, we will continue
with our strategy execution. We view customer service as a key element
in providing banking services and have launched a, “Service
Focus 2006” program to pave the way to realize our vision to
be Indonesia’s best bank, providing world class standard of
customer service and product innovation” added Henry.
CFO and Managing Director, Prem Kumar further added that, “We
are pleased that we were able to grow our core business considering the
tough environment. We have deployed resources and invested in the
businesses to build a long term sustainable business to optimize the
performance of the bank, further we hope our strategy transformation
process and investments made in 2005 will put us in a strong position
for the future to take the opportunities that will be presented as
market conditions improve in 2006.”
assets grew 36% to Rp49,026 billion fuelled primarily by loan growth,
which increased 68% to Rp22,098 billion. There was a 95% increase in
consumer loans and a 47% increase in SME/Commercial loans respectively.
BII’s loan segmentation stood at 41% Consumer, 30%
SME/Commercial and 29% Corporate as of year end 2005.
LDR reached 55.30% in December 2005 compared to 43.62% the previous
year. BII’s total customer deposit grew to
Rp36,917 billion an increase of 25% from Rp29,639 billion last year. As
of December 2005, the BII’s deposit mix consisted of 14%
saving, 27% current accounts and 59% time deposit.