PT Bank Central Asia, Indonesia’s largest financial services company by market value, posted a 14.3 percent gain in first-quarter profit from a year earlier driven by increased loan demand.
Net income at the Jakarta-based bank rose to 2.3 trillion rupiah ($250 million) in the three months ending March 31, from 2 trillion rupiah the same period a year earlier, the lender said in a statement released in Jakarta today.
Indonesia’s central bank kept its benchmark interest rate unchanged at a record-low 5.75 percent for two straight months, helping commercial banks to boost lending in Southeast Asia largest economy, which is driven mostly by consumer spending.
Bank Central Asia’s lending grew 39 percent to 209.2 trillion rupiah supported by a “favorable economic environment,” and corporate and consumer loans, according to the statement.
Net interest income, or the difference between revenue from loans and payments to depositors, rose 16 percent to 4.47 trillion rupiah from 3.85 trillion rupiah a year earlier.