BTN`s profit slightly up 2.2 pct

BTN`s profit slightly up 2.2 pct

PT Bank Tabungan Negara Tbk (Persero). (ANTARA/Yudhi Mahatma)

We suffer potential losses from securities..."
Jakarta (ANTARA News) - State-owned Bank Tabungan Negara (BTN) saw its net profit slightly rise 2.2 percent to Rp673 billion in the first half of 2013 from the same period last year.

The profit growth represented a drastic drop compared to the same period last year when it was 39.59 percent from a year earlier.

BTN President Director Maryono told a press conference here on Tuesday night the drop was among others caused by rising non-performing loans (NPLs).

"The net profit growth fell to 2.2 percent because of several things, first, the amount of our NPLs rose compared to 2012," he said.

The bank`s gross NPLs rose to 4.63 percent from 3.46 percent, and net NPLs increased to 3.65 percent from 2.42 percent, he said.

"Given the rising NPLs, we have set aside about Rp150 billion as CKPN (reserve for impairment loss)," he said.

The other cause of the low profit growth was the potential mark-to-market losses from securities in the form of state debt securities, he said.

"We suffer potential losses from securities in the form of state debt securities due to a change in the market. Because of the current situation we suffer Rp95 billion in losses," he said.

"If the two factors did not occur, our net profit would grow 18 percent," he said.

(Reporting by Citro Atmoko/S012/B003)