Indonesian Banks Post Good Financial Results in Semester I-2013
Despite a higher benchmark interest rate, higher inflation, a weakening rupiah, and global economic turmoil, four out of seven Indonesian banks that released their financial results over the first half of 2013, have posted double-digit growth. The seven banks show a combined growth of 16.2 percent. Although it is an impressive figure, it is a couple of percentage points lower than last year's performance. Indonesia's economy has slowed down to an annual economic growth of six percent and this has impacted on domestic demand for credit loans.
Net Income Semester I-2013:
| IDR Trillion |
Growth YoY |
|
| Bank Mandiri | 8.29 | 16.1% |
| Bank Central Asia | 6.32 | 19.3% |
| Bank Negara Indonesia | 4.28 | 30.2% |
| CIMB Niaga | 2.13 | 7.6% |
| Bank Danamon Indonesia | 1.99 | -0.9% |
| Bank Internasional Indonesia | 0.68 | 15.1% |
| Bank Tabungan Negara |
0.67 | 2.1% |
| Total | 25.37 | 16.2% |
Source: Investor Daily
Performance of Indonesian banks in the second semester of 2013 may be a little bit less positive as it has been in the first semester as the country is experiencing some troubles. Inflation is heading to 7 or 8 percent and this has made Indonesia's central bank decide to raise the benchmark interest rate twice recently to 6.50 percent. Analysts expect that the bank may raise the interest rate again if inflation in July will be higher than targeted.