Indonesian banking industry`s profit reaches Rp28.95 trillion until March

Jakarta  (ANTARA News) - The Indonesian banking industry saw their profit in the first quarter of 2016 falling 2.4 percent to Rp28.9 trillion compared to the same period last year, the Financial Service Authority (OJK) said.

The profit fell due to high operating expenses until March 2016 which rose 37.3 percent to Rp127.1 trillion from Rp92.5 trillion in the same period last year, according to the Indonesian banking statistics released by OJK on Wednesday.

The non-interest operating expenses are well above the net interest income of commercial banks which grew 13.7 percent to Rp82.06 trillion from Rp72.1 trillion.

Based on the categories of banks, commercial banks belonging to BUKU I recorded Rp600 billion in profit at the end of March 2016, BUKU II Rp3.01 trillion, BUKU III Rp7.29 trillion and BUKU IV Rp17.6 trillion.

The Banking industry also recorded their intermediary function growing although the growth still ranges in one digit.

By the end of March 2016, all credits extended by commercial banks grew 8.48 percent to Rp4,029 trillion from Rp3,714 trillion in the same period last year.

Despite a shortfall in profit, interest income of the bank industry as could be seen from net interest margin rose to 5.5 percent from 5.3 percent.

Meanwhile, the banking industrys loan to deposit ratio (LDR) increased to 89.6 percent from 87.58 percent.(*)