Jakarta (ANTARA News) - PT. Bank Tabungan Negara Tbk posted a 25.4 percent increase year-on-year in net profit to Rp1.04 trillion in the first half of 2016, despite a decline in net interest margin.
"Our net interest margin (NIM) fell slightly from 4.73 percent to 4.65 percent, but credit disbursement grew strongly," President Director of the state-owned bank Maryono said.
Maryono said the bank recorded a 18.39 percent increase in credit disbursement.
By the end of the first half of 2016, BTNs outstanding credits rose to Rp149.3 trillion from Rp126 trillion a year earlier, he said.
The net interest income of the bank rose 15.7 percent to Rp3.6 trillion in the first half of 2016, and fee based income rose 12.5 percent to Rp584 billion, he said.
He said the decline in NIM was in line with the program of efficiency by the bank.
The impact of efficiency included a decline in the ratio of Operating Cost to Operating Income (BOPO) to 84.7 from 85.4 percent that would result in cut of cost of fund.
Maryono said house ownership credit (KPR) is still the main product of BTN. The bank had a 31.7 percent share of the market of KPR by March 2016.
He said BTNs KPR grew 20.2 percent on-year to Rp135.7 trillion in the first half of 2016.
This year the bank hopes to chalk up a 19-20 percent increase in credits .
A BTN Director Sulis Usdoko said the non performing loan ratio of the bank declined from 3.37 percent to 2.23 percent.
"The NPL declined as from the start of the year we already prepared a program to restructure credits and handle NPL," Sulis said.
Meanwhile third party fund held by the bank rose 17.29 percent to Rp134.5 trillion bringing assets of the bank to Rp189.5 trillion or an increase of 21 percent on-year.
With the third party fund and credits its Capital Adequacy Ratio (CAR) rose to 22.07 percent from 14.7 percent.(*)