Jan. 31 (Bloomberg) -- PT Bank Rakyat Indonesia, the nation’s second-largest lender by assets, said 2012 net income rose 23 percent from a year earlier as lending increased. The profit beat analysts’ estimates.
Net income jumped to 18.5 trillion rupiah ($1.9 billion), exceeding the 17.08 trillion rupiah median estimates of 29 analysts in a Bloomberg News survey. That’s the biggest profit on record since 2000, according to data compiled by Bloomberg. Lending increased 23 percent from a year earlier, Bank Rakyat President Director Sofyan Basir told reporters in Jakarta today. The profit growth is the result of the bank strengthening its focus on micro lending, it said in a statement.
“This is a positive surprise,” Agus Pramono, an analyst at PT Indo Premier Securities in Jakarta said by telephone. “Competition in micro financing is intensifying and Bank Rakyat is pushing back.”
Boosting micro financing is helping the Jakarta-based lender tap into Indonesia’s rising domestic consumption. Southeast Asia’s biggest economy expanded 6.17 percent in the three months ended Sept. 30 from a year earlier, holding above a 6 percent pace for an eighth quarter. Purchasing power will continue to improve as growth accelerates, Basir said.
Net interest income, or revenue from borrowers after deducting interest paid to depositors, rose 4.7 percent to 35.4 trillion rupiah last year, Basir said. He expects net income to increase 15 percent to 18 percent this year.
Bank Rakyat also plans to sell $500 million to $1 billion of global bonds in the first quarter, Basir said.
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