HSBC Holdings PLC HSBA PT Bank Ekonomi Raharja TBK 3Q 2012 Results

  HSBC Holdings PLC (HSBA) - PT Bank Ekonomi Raharja TBK 3Q 2012 Results

RNS Number : 7699Q
HSBC Holdings PLC
09 November 2012








9 November 2012





                         PT BANK EKONOMI RAHARJA TBK

                   RESULTS FOR THE NINE-MONTH PERIOD ENDED

                        30 SEPTEMBER 2012 - HIGHLIGHTS





· Profit before tax for the nine-month period ended 30 September 2012 was
IDR195.2bn (US$21m), a decrease of 26% compared with IDR262.7bn (US$28m) for
the same period in 2011.



· Net interest income amounted to IDR694.0bn (US$75m) for the nine-month
period ended 30 September 2012, a slight decrease of IDR9.8bn (US$1m), or 1%
compared with the same period in 2011.



· The cost efficiency ratio for the nine-month period ended 30 September
2012 increased to 79.3% compared with 64.0% for the same period in 2011.



· Total assets were IDR24,747.2bn (US$2,581m), an increase of IDR648.2bn
(US$68m), or 3%, as at 30 September 2012 compared with IDR24,099.1bn
(US$2,513m) as at 31 December 2011.



· The core capital ratio decreased slightly to 13.88% as at 30 September
2012 compared with 15.44% as at 31 December 2011.



Commentary



Bank Ekonomi reported profit before tax of IDR195.2bn (US$21m) for the
nine-month period ended 30 September 2012, a decrease of 26% compared with the
same period in 2011, as operating expenses increased by IDR154.6bn (US$17m),
while operating income (including net interest income) increased by IDR45.8bn
(US$5m). Total operating expenses increased by 31%, driven by increases in
employee expenses and information technology improvement related expenses.
Operating income significantly increased by 82%, through gains from assets
held for sale (foreclosed assets), a reversal of impairment losses on loans
and increased net trading income.



Net interest income for the nine-month period ended 30 September 2012
wasIDR694.0bn (US$75m), a slight decrease of 1%, or IDR9.8bn (US$1m) compared
with the same period in 2011. The decrease was mainly due to lending rates
decreasing more than deposit rates as competition in the market increased.



Non-interest income was IDR123.6bn (US$13m) for the nine-month period ended 30
September 2012, an increase of 82% or IDR55.7bn (US$6m) compared with the same
period in 2011. This was due to an increase in net trading income and the sale
of assets acquired from the settlement of troubled debt.

Operating expenses for the nine-month period ended 30 September 2012 were
IDR648.5bn (US$70m), an increase of 31% or IDR154.6bn (US$17m) compared with
the same period in 2011, which was mainly due to an increase in employee
expenses and infrastructure improvement related expenses. As part of the
Bank's continuous improvement and expansion, the Bank has invested in its
people and infrastructure which resulted in a significant increase in
operating expenses.



Total assets as at 30 September 2012 increased by IDR648.2bn (US$68m), or 3%,
compared with 31 December 2011. In line with the increase, the gross balance
of loans to customers increased by IDR2,365.6bn(US$247m) as the Bank kept
expanding its loan portfolio.



Customer deposits as at 30 September 2012 increased by IDR905.0bn (US$94m) to
IDR20,977.5bn (US$2,187m) compared with 31 December 2011.



Media enquiries to Lenggono S Hadi at lenggono.hadi@bankekonomi.co.id



Notes to editors:



1. Accounting standards

The figures quoted above have been prepared by PT Bank Ekonomi Raharja Tbk in
accordance with the applicable Indonesian Financial Accounting Standards (SAK)
issued by the Indonesian Institute of Accountants. The translation of the
amounts in the statement of financial position and profit and loss account
from Indonesian Rupiah to U.S. Dollar amounts is based on the latest
period-end exchange rate and average exchange rate, respectively. The
fluctuation percentages represent fluctuation differences in Indonesian Rupiah
amounts. Due to adoption of (Financial Accounting Standards Principal) PSAK
No. 60 "Financial Instruments : Disclosures" (equivalent with IFRS 7) requires
more extensive disclosure of the Bank's financial risk management; therefore,
certain accounts have been reclassified to reflect the classes of financial
assets and liabilities.



2. PT Bank Ekonomi Raharja Tbk (Bank Ekonomi)

PT. Bank Ekonomi Raharja Tbk (Bank Ekonomi) is a leading commercial banking
service provider, established in 1989 and at 30 September 2012 has 97 branches
in 28 cities across Indonesia. Supported by more than 2,568 employees, Bank
Ekonomi is listed on the Indonesia Stock Exchange and as of 30 September 2012,
98.94 % of its shares are owned by HSBC Asia Pacific Holdings (UK) Limited, a
wholly owned subsidiary of HSBC Holdings Plc. As a member of the HSBC Group,
Bank Ekonomi is part of one of the largest financial services organisations in
the world.



3. HSBC in Indonesia

HSBC has operated in Indonesia since 1884 and now serves its customer through
52branches, including 5 HSBC Amanah branches, in 6 major cities across
Indonesia. Supported by more than 2,753 employees, today HSBC Indonesia has
grown into Indonesia's leading international bank, offering services in retail
banking and wealth management, corporate and investment banking, institutional
banking, treasury capital markets and Sharia banking services.



4. HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 6,900 offices in over
80 countries and territories in Europe, the Asia-Pacific region, North and
Latin America, Middle East and Africa,. With assets of US$2,721bn at 30
September 2012, HSBC is one of the world's largest banking and financial
services organisations.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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