March 29 (Bloomberg) -- PT Bank Central Asia, Indonesia’s largest financial services company by market value, posted a 27.6 percent gain in 2011 profit from a year earlier, as demand for credit climbed on faster economic growth.
Net income at the Jakarta-based bank increased to 10.8 trillion rupiah ($1.2 billion) from 8.48 trillion rupiah a year earlier, the lender said in a statement in Jakarta today. A survey of 28 analysts by Bloomberg estimated net income was 10 trillion rupiah.
Indonesia’s central bank lowered its benchmark interest rate twice in the last quarter helped to boost domestic consumption that accounts for about 60 percent of gross domestic product in Southeast Asia’s biggest economy. GDP grew 6.46 percent last year, the fastest pace since before the Asian Financial crisis.
“Indonesia’s stability and economy last year provided a strong foundation for us to reach positive performance,” President Director Jahja Setiaatmadja said at a press briefing after the statement was released. “Even if the government raises the price of subsidized fuel and the minimum down payment rule for mortgages and vehicles is implemented, purchasing power will remain good. We are optimistic we can achieve loan growth of about 20 percent this year.”
Net interest income, or the difference between revenue from lending and payments to depositors, rose 30.1 percent to 16.84 trillion rupiah from 12.94 trillion rupiah a year earlier, according to the statement.
Lending grew 31.4 percent to 202.3 trillion rupiah, compared with average growth of 24.5 percent among all banks in the country.
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