Indonesia's 2nd largest state bank posts 14 pct profit growth in 2014

A senior official at Indonesia's second largest state-run bank, Bank Rakyat Indonesia (BRI), said on Monday that the bank raked 24.20 trillion rupiah (about 1.9 billion U.S. dollars) of net profit throughout last year, or 14.35 percent higher than it booked a year earlier.

BRI Acting President Director Asmawi Syam said that the profit growth was significantly contributed to by loan channeling expansion, and added that the bank remains adhered to its primary function in developing the business in small-middle enterprises ( SMEs) sector.

"Our corporate loans were ultimately focused on businesses that gave trickle-down effects to businesses in SMEs sector," Asmawi said in his office here.

He also said that BRI also recorded significant deposit fund growth in the year, up to 600.40 trillion rupiah (about 48 billion U.S. dollars). The figure was 23.45 percent higher than in 2013.

It made the bank's Loan to Deposit Ratio (LDR) reach 81.68 percent. "That ratio showed effectiveness of financial intermediary function of the bank," he added.

Besides deposit fund increase, BRI also saw significant growth in its assets throughout last year, reaching up to 778.02 trillion rupiah (about 62.2 billion U.S. dollars) from 606.37 trillion rupiah (about 48.5 billion U.S. dollars) it recorded in 2013, he said.