Publicly traded lender PT. Bank Negara Indonesia Persero Tbk reported Rp2.9 trillion in net profit in the first quarter of this year up 5.5 percent year-on-year.
The profit was attributable mainly to net interest income especially interest on infrastructure credits, Achmad Baiquni, the president director of the state owned bank said here on Tuesday.
Its net interest income grew 13.3 percent to Rp6.91 trillion in the first three months of 2016 from Rp6.09 trillion in the same period last year.
“The net interest margin (NIM) of the bank was 6.1 percent in the first quarter of this year,” Baiquni said.
The NIM of the countrys fourth largest bank in asset, rose with a strong 21.2 percent growth in credits to Rp326.74 trillion in the January-March period of 2016 from Rp269.51 trillion in the same period in 2015.
Credits for the business and consumption sectors were the largest contributors to its credit expansion, Baiquni said.
Credits for the business, which grew 22.7 percent (yoy) to Rp234.2 trillion in the first quarter of 2016, accounted for 71.7 percent of the banks total credits.
Credits for the construction sector surged 127.5 percent to Rp5.99 trillion and credits for the consumption sector rose 9.8 percent to Rp57.56 trillion in the first quarter of 2016.
The bank also recorded an increase in fee based income , up 16.4 percent to Rp2.22 trillion .
The third party funds held by the bank rose 21.8 percent (yoy) to Rp371.5 trillion in the first quarter of 2016 .
Cheap funds accounted for 58.5 percent or around Rp217.5 trillion of the third party funds – or an increase of 12.9 percent (yoy).
The credit expansion that grew 21.2 percent and the third party funds that increased 21.8 percent resulted in 25 percent rise (yoy) in its assets to Rp509.09 trillion in the first quarter of 2016 .