Bank Mega books over $109M net income despite sanctions

Bank Mega's net income went up 12 percent from the previous year to more than a Rp 1 trillion or US$109.3 million.

This was achieved despite sanctions imposed by banking regulator Bank Indonesia.

Loans reached a total of Rp 31.4 trillion in 2011, accelerating by 33 percent from the year before, which was higher than the Indonesia's national commercial banks’ average loan growth. That lifted the bank’s net interest income by 24.11 percent to Rp 2.71 trillion during the same period.

The growth of third-party funds, however, only reached 9.37 percent, making Rp 49.14 trillion.

Since May last year Bank Mega was prohibited from opening new branch offices and signing up limited types of deposits for one year, after the bank’s reputation was hit by two high-profile cases of missing funds worth Rp 191 billion.

As of December 2011, Bank Mega had a total asset of Rp 61.91 trillion, up almost 20 percent from 2010. The company’s market value was almost Rp 13 trillion, with shares trading at Rp 3,500 apiece at Wednesday’s close, unchanged from the previous day.