Bank OCBC NISP Books Rp321 Billion Profit in 2010 Read more about Bank - The Indonesia Today

PT Bank OCBC NISP Tbk (NISP) announced today it posted a net income of Rp321 billion in 2010, falling Rp115 billion or 26.4% compared to Rp436 billion in 2009.

Notwithstanding the declining trend in interest rates, net interest income which amounted to Rp1,807 billion in 2010 represented an increase of Rp80 billion, or 4.6%, compared to Rp1,727 billion in 2009.

"This is attributed to the Bank’s ability to increase its lending by 27.7% in 2010, while maintaining an efficient level of cost of funds as evident from the increase in the composition of low-cost funds from 56.2% at year-end 2009 to 59.6% by the end of 2010," the bank said.

Net interest income contribution to total revenue has risen to 79.0% in 2010 compared to 77.6% in 2009. Net interest margin (NIM) experienced a slight drop from 5.5% in 2009 to 5.1% in 2010 due to a 16.1% increase in earning assets balanced only by a 4.6% rise in net interest income.

In 2010, interest income registered at Rp 3,332 billion or a decrease of Rp 36 billion or 1.1% compared to Rp 3,368 billion in 2009. While interest expense reached Rp1,525 billion or shrunk Rp116 billion or 7,1% compared to Rp1,641 billion in 2009.

In 2010, other operating income posted Rp482 billion, signifying a Rp15 billion or 3.1% reduction compared to Rp497 billion in 2009. Net non-operating costs amounted to Rp178 billion in 2010 mainly due to the incurrence of expenses worth Rp 189 billion arising from the merger of Bank OCBC NISP and Bank OCBC Indonesia as part of Bank OCBC NISP in 2010.

Total assets were worth Rp44,475 billion by 31 December 2010, an upsurge of Rp7,422 billion or 20% compared to Rp37,053 billion at year-end 2009. This upward trend is largely attributed to an increase in gross loans reported at Rp6,070 billion.

Gross loans outstanding by 31 December 2010 totaled Rp27,957 billion, representing a 27.7% rise compared to Rp21,887 billion in 31 December 2009.

The bank has managed to maintain asset quality as reflected in lower gross non-performing loans (NPL) at 2.0% from total gross loans or reaching Rp560 billion on 31 December 2010 compared to 3.2% or Rp694 billion by the end of 2009.

Loan increases that exceeded the growth of third party funds have led to a 5.6% rise in the Loan to Deposit Ratio (LDR) to 78.0% at the end of 2010 from 72.4% on 31 December 2009 which is higher compared to the banking industry’s LDR at approximately 75.1%.

Total liabilities on 31 December 2010 recorded at Rp39,942 billion, an increase of Rp7,027 billion or 21.3% compared to Rp32,915 billion on 31 December 2009. This upward movement is principally ascribed to increased third party funds and the growth of subordinated bonds at Rp5,647 billion and Rp875 billion respectively.

Third party funds reached Rp35,863 billion on 31 December 2010 denoting an 18.7% rise compared to Rp30,216 billion by the end of 2009. The composition of third party funds consisting of demand deposits, savings and time deposits each represent 18.7%, 40.9% and 40.4% from total third party funds by the end of 2010.