Bank Jabar enjoys 21% lending growth

Bank Jabar reported a 21 percent increase in lending in the first quarter of the year.

Consumer lending was the main contributor to the increase, reaching Rp 20.46 trillion, followed by micro loans of Rp 3.04 trillion and commercial loans of Rp 4.32 trillion.

This brought optimism that the company would meet its target of 22 to 25 percent growth by year end.

The bank’s credits stood at Rp 29.1 trillion or US$3.16 billion in the first three months of the year.

Bank Jabar president director Bien Subiantoro said that his company expected higher growth in micro lending in the second quarter.

“There are credits we have approved in the first quarter that have not yet been withdrawn,” Bien said, adding that the bank also expected additional lending as government and local administration projects are expected to commence during the second quarter.

The company’s third party funds stood at Rp 51.39 billion. Net interest income reached Rp 1.59 trillion while other operating income was Rp 45 trillion during the first three months of the year.

Bank Jabar booked Rp 270 billion in net profits during the January to March period, an increase of 4 percent from Rp 260 billion over the same period last year.

Bien said that the bank actually booked Rp 281 billion in net profits; however, the bank had to eliminate Rp 11 billion in dividends from its sharia unit.