State lender Bank Negara Indonesia (BNI) saw its net profit in the first half of 2017 jumping 48.7 percent to Rp6.41 trillion, fueled by the distribution of credits.
“Our credits grew 15.4 percent year-on-year to Rp412.1 trillion, contributing Rp15.40 trillion or 10.7 percent to the net interest income,” BNI Consumer Director Anggoro Eko Cahyo said in a press conference here, Wednesday.
Most of the credits were channeled towards business banking, particularly corporations and state-owned companies, as well as small- and medium-business undertakings, he remarked.
The credits channeled towards business banking totaled Rp296.1 trillion, accounting for 71.6 percent of the total credit portfolio in the first half of 2017, he added.
“The distribution of credits to corporations was also fueled by many infrastructure and agricultural projects,” he affirmed.
The infrastructure projects included toll roads built by state-owned construction companies in Java, he mentioned.
He explained that the credits extended to the consumer sector reached Rp67.05 trillion, accounting for 16.3 percent of the total portfolio. The credits extended to overseas debtors in foreign currency stood at Rp25.92 trillion, accounting for 6.3 percent of the banks total credits.
“The amount of credits channeled by the banks subsidiaries reached Rp23.09 trillion or 5.6 percent of the banks total credits,” he revealed.
He stated the bank also recorded a 17.9 percent rise in non-interest income to Rp4.65 trillion, fueled by fee-based income which grew 17.9 percent.