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Bank Rakyat Indonesia posts 3.2% YOY increase in FY'16 profit

PT Bank Rakyat Indonesia (Persero) Tbk reported a 3.2% year-over-year increase in net profit for the full year ended Dec. 31, 2016, on the back of increased net interest income.

The bank said Jan. 31 that consolidated net profit rose to 26.228 trillion rupiah from 25.411 trillion rupiah in 2015. EPS rose to 1,063.2 rupiah from 1,030.1 rupiah.

Net interest income rose to 67.576 trillion rupiah from 58.280 trillion rupiah. Fee and other operating income jumped 24.3% year over year to 17.218 trillion rupiah from 13.855 trillion rupiah in 2015.

The bank allocated provisions of 13.791 trillion rupiah in 2016, up from 8.900 trillion rupiah in 2015. The gross nonperforming loan ratio was 2.13% at the end of 2016, down from 2.31% at the end of September 2016 and up from 2.10% at the end of 2015.

The bank's net interest margin at the end of 2016 was 8.10%, down from 8.23% at the end of September 2016 but up from 7.91% at the end of 2015.

As of the end of 2016, the Tier 1 capital adequacy ratio was 21.54%, up from 20.48% as of Sept. 30, 2016 from 16.68% as of Dec. 31, 2015. The total capital adequacy ratio was 22.69%, compared to 21.46% at the end of September 2016 and and 20.39% at the end of 2015.

Looking ahead, the bank is targeting net profit growth of 3% to 5% in 2017. It is targeting an NPL ratio of 2.2% to 2.4% and net interest margin of 8% to 8.2%.

As of Jan. 31, US$1 was equivalent to 13,331 Indonesian rupiah.