BI Deputy Governor Muliaman D Hadad told a hearing of the House of Representatives (DPR)`s Commission XI on financial affairs here on Wednesday that with that performance, banks` loan-to-deposit ratio (LDR) increased from 75.15 percent in December 2010 to 77.98 percent in April 2011.
Apart from that the quality of banking credits was also relatively under control with gross and net non-performing loan ratios respectively recorded at 2.8 percent and 0.5 percent. It was relatively stable compared with those in the previous month.
This also improved the operational cost-to-income ratio from 80 percent in December 2010 to 77.8 percent in March 2011.
The improved banking performance also raised the banks profitability. In March 2011, the banks Return On Assets (ROA) was recorded at 3.1 percent or an increase if compared with that in December 2010 which was 2.7 percent.
All this has positive impact on the banks capital where in March 2011 the banks` capital adequacy ratio (CAR) was recorded at 17.6 percent or far over the required minimum standard of 8 percent. Thus, the CAR was strong enough to serve as a buffer of risks.
(Uu.A014/HAJM)
Editor: Priyambodo RH
Copyright © ANTARA 2011
