PT Bank Rakyat Indonesia, the nation’s second-largest bank by assets, said 2011 net income rose 31.47 percent supported by loan growth.
The Jakarta-based lender reached net income of 15.08 trillion rupiah ($1.65 billion), from 11.47 trillion rupiah a year earlier, Djarot Kusumayakti, a director at the company, said in Jakarta today.
Net interest income, or revenue from borrowers after deducting interest paid to depositors, rose 4.14 percent to 33.8 trillion rupiah last year, from 32.5 trillion rupiah a year earlier while fee based income increased 1.22 percent to 5.5 trillion rupiah from 5.4 trillion rupiah in 2010.
Bank Rakyat benefits from record low interest rates that have helped spur loan demand in Southeast Asia’s biggest economy. The central bank lowered its benchmark interest rate to 5.75 percent in February after cutting the reference rate in October by a quarter of a percentage point to 6.5 percent and a half of a percentage point to 6 percent in November to boost consumption.
Lending grew 14.83 percent to 283.58 trillion rupiah, less than an average 24.5 percent credit-growth for all commercial banks last year. This year, the lender expects lending to accelerate 20 percent to 25 percent.