Strong capital structure also contributed to the expansion of business of the bank.
Jakarta (ANTARA News) - PT Bank Mutiara Tbk (Bank Mutiara) reported a healthy growth in 2012 with assets growing 17.2 percent on-year to Rp15.3 trillion by Dec. 31 , 2012.

The management of the bank attributed the growth to improved financial performance in 2012 .

A news release by the bank on Sunday said that the third party funds it held grew 20.2 percent to Rp13.4 trillion with outstanding credit rising 18.7 percent to Rp11.1 trillion by the end of 2012 compared to a year earlier.

Prudential banking principle was strictly observed in the credit expansion as reflected by the decline in net non performing loan ratio to 3.4 percent from 4.5 percent, the statement said.

The statement said the strong growth of third party funds and credit expansion indicated improved public confidence in the former scandal hit Bank Century.

Investigation into the legal case of Bank Century has been dragged until now over controversial Rp7 trillion bail out by the government in 2009.

The Corruption Eradication Commission has named two former deputy governors of the central bank as suspects in the case which also implicated a number of other top officials of the government .

Ahmad Fajar, acting president director of Bank Mutiara said the management is set to continue to improve the public confidence in the bank.

Ahmad said strong capital structure also contributed to the expansion of business of the bank.

The bank recorded Rp1.3 trillion in equity by Dec. 31 , 2012 or an increase of 37.2 percent from a year earlier.

Its core capital rose by 29.3 percent to Rp1 trillion in the same period . It was as against a minus of Rp1.4 trillion in 2008 when the government took over the bank and renamed it Bank Mutiara.

Its capital adequacy ratio rose to 11.1 percent by the end of 2012 from 9.4 percent a year earlier.

The bank also succeeded in improving its efficiency in management in 2012 allowing it to post profit optimally as reflected by the decline in its operating cost ratio to operating income from 87.2 percent in 2011 to 83.9 percent in 2012.

The bank also succeeded in increasing its Net Interest Margin (NIM) to 2.8 percent by the end of 2012 from 1.6 percent a year earlier.

In 2012, the bank posted Rp273 billion in profit or an increase of 4.8 percent from 2011 including from interest income and non interest income.

In the future, the bank`s business will have support from a number of business lines such as expansion of credits in the small business sector .

In 2013, the bank plans to open 100 new outlets in various cities all over Indonesia, under its program to expand cooperation withy small businesses.

With the opening of the new outlets, the bank is optimistic it could increase its outstanding credit to Rp12.978 trillion with third party funds it held growing to Rp14.766 trillion in 2013.
(Uu.AS/H-ASG/O001)

Editor: Priyambodo RH
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