Danamon Posts Increase In Net Profit To Rp3 T In Q3

Jakarta, Oct 18 (Antara) - PT Bank Danamon Indonesia Tbk reported Rp3 trillion in Q3 net profit or slightly higher than US$2.99 trillion in the same period last year. "The net profit was attributable mainly to a 5 percent increase in net interest income to Rp10.1 trillion," its president director, Henry Ho, said here on Thursday. The country`s sixth largest lender in asset recorded Rp9.5 trillion in net interest income in the third quarter of 2012. Henry said fee based income that rose 12 percent to Rp3.7 trillion also contributed to the rise in net profit. "Our operating income also grew strongly by 7 percent," Chief Financial Officer and director of the bank Vera Eve Lim said. The operating income of the bank reached Rp13.8 trillion in the third quarter of this year , up from Rp12.8 trillion in the same period last year. Vera attributed the increase in operating income to credit related fees that rose 10 percent to Rp2.7 trillion and income from banking transactions that increased 23 percent to Rp255 billion. However, the bank also recorded an increase in operating cost to Rp7.2 trillion or up 12 percent on year. "The impact of the increase in minimum wages is also significant on operating cost," she said. The bank recorded a strong growth of 14 percent on-year in outstanding credit to Rp129 trillion by the end of September this year . Despite the credit expansion the bank has maintained the quality of its credit with non performing loan ratio cut to 2.2 percent from 2.5 percent a year earlier, Vera said.