3 March 2006
PT Bank Internasional Indonesia Tbk. (BII) ended the year on a solid note. Loans grew 68% (gross) to Rp22,098 billion, compared to the previous year. In the light of the volatile market conditions fueled by high inflation and interest rates, this loan growth is commendable considering the containment of NPL’s. On the back of this loan growth interest income increased by 50% to Rp4,443 billion, while net interest income grew by 42% to Rp2,345 billion from Rp1,646 billion last year. Discounting the one off gains from sales of marketable securities in 2004, other operating revenues increased by 30% supported by increases in fees and commissions. Total operating expenses rose by 29% to Rp2,212 billion from Rp1,708 billion.
On a consolidated basis net profit after tax for 2005 ended at Rp725 billion compared with Rp822 billion in previous year or a decline of 12%. However, discounting the one off gains on marketable securities of Rp340 billion earned in 2004, the 2005 net profit based on core business grew by 51%.
Henry Ho, BII’s President Director stated, “We are pleased that our strategy was tested during both the benign market conditions in the first half of the year and the significantly more difficult market in the second half of the year and has proven to be robust as evidenced by our strong business growth. We were able to contain our NPL (gross) to 2.88% from 4.01% last year despite our strong loan growth, reflecting prudent and conservative credit measures.” “Going forward in 2006, we will continue with our strategy execution. We view customer service as a key element in providing banking services and have launched a, “Service Focus 2006” program to pave the way to realize our vision to be Indonesia’s best bank, providing world class standard of customer service and product innovation” added Henry.
BII’s CFO and Managing Director, Prem Kumar further added that, “We are pleased that we were able to grow our core business considering the tough environment. We have deployed resources and invested in the businesses to build a long term sustainable business to optimize the performance of the bank, further we hope our strategy transformation process and investments made in 2005 will put us in a strong position for the future to take the opportunities that will be presented as market conditions improve in 2006.”
Total assets grew 36% to Rp49,026 billion fuelled primarily by loan growth, which increased 68% to Rp22,098 billion. There was a 95% increase in consumer loans and a 47% increase in SME/Commercial loans respectively. BII’s loan segmentation stood at 41% Consumer, 30% SME/Commercial and 29% Corporate as of year end 2005.
BII’s LDR reached 55.30% in December 2005 compared to 43.62% the previous year.
BII’s total customer deposit grew to Rp36,917 billion an increase of 25% from Rp29,639 billion last year. As of December 2005, the BII’s deposit mix consisted of 14% saving, 27% current accounts and 59% time deposit.