"Permata Bank has continued to be in healthy condition both in capital and liquidity. That makes us optimistic in facing the economic challenges and impact on credit portfolio," its finance director Sandeep Jain said here on Thursday.
Bank Permata, which is jointly owned by PT Astra International and Standard Charter Bank recorded improvements in performance amid macro economic condition full with challenges in the first six months of the year, Sandeep said.
Its operating income rose 21 percent to Rp4.23 trillion, he said attributing the increase to rise in net interest income and fee based income.
Income in net interest grew to Rp3.13 trillion in the first six months of 2015 from Rp2.69 trillion a year before as a result of improvement in net interest margin.
Meanwhile, fee based income rose to Rp1.1 trillion from Rp815 billion thanks mainly to business in bancassurance, trade finance , treasury activities capital participation in PT Astra Sedaya Finance (ASF).
Despite the economic slowdown, the assets of the bank grew 5 percent to Rp187 trillion by June 30 from Rp177 trillion a year earlier.
Its outstanding credit including sharia finance grew 2 percent (yoy) to Rp130 trillion by the end of June.
Business with small and middle scale enterprises (SMEs), local segment and "middle market corporates", which was driven by Trade Finance and loan products contributed to the credit expansion.
The outstanding credit, however, was smaller than it was by the end of last year.
Bank Permata has sustained liquidity at an optimum level with third party funds growing 4 percent to Rp144 trillion.
Slower growth of credit compared to third party fund held by the bank resulted in improvement in its Loan-to-Deposit Ratio (LDR) to 90 percent from 92 percent in earlier periods.
Bank Permata has maintained strong capital structure against risk weighted assets and ended the first half of 2015 with Capital Adequacy Ratio (CAR) at 14 percent.
Its equity grew 9 percent on-year to Rp17.7 trillion by the end of June 2015.
The macro economic condition marked with big challenges weighed on the quality of banks assets. Its gross and net non performing loans (NPL) ratios rose to 2.15 percent and 1.14 percent respectively from 1.45 percent and 0.73 percent a year earlier.
Bank Permata has continued to monitor its clients in certain industrial sectors that were hit by the impact of commodity price fall and falling value of rupiah, Sandeep Jain said.
He said amid the economic slowdown and shrinking consumption and uncertainty in geopolitical and macro economic condition, Bank Permata posted good operating performance and maintain strong financial balance in the first half of 2015.