BTPN Reports 15 Pct Increase In Credit

Jakarta, July 21 (Antara) - Publicly traded lender PT Bank Tabungan Pensiunan Nasional reported a 15 percent increase in credit disbursements in the first half of the year. The medium sized bank recorded Rp50 trillion in outstanding loans by June 30 , 2014 , up from Rp43.6 trillion a year earlier. President Director of the bank Jerry Ng said the year 2014, is full of challengers for banking industry. Carrying out the bank intermediate function amid the economic slowdown is not an easy task, Jerry said here on Monday. "In facing the reality, BTPN is focused on fundamental matters conservatively and prudently -- the basic principle maintained by banks in general in facing a situation prevailing at present," he said. The steps taken by BTPN, include improving liquidity, maintaining good credit quality , managing interest and operating cost efficiently and prudently, he said. "The strategy is to keep the bank`s performance healthy. The credits are allowed to grow moderately but healthy with non performing loans (NPL) remaining under control at 0.9 percent gross," he said. In line with the policy of prudence in credit expansion , BTPN will continue to consider its liquidity . By June 30, 2014 , the bank had Rp52.7 trillion in third party fund, up 10 percent from Rp47.7 trillion a year earlier. The 10 percent increase in third party fund was higher than 6 percent growth year-on-year in the first quarter of 2014 . "The loan to deposit ratio (LDR) was safe at 95 percent. Including funding with bond fund, the liquidity ratio was 85 percent. This is a strong and healthy level," he said. With moderate growth in credits and third party funds, the bank`s assets grew 12 percent to Rp71.4 trillion by June 30 , 2014 from Rp63.9 trillion a year earlier , with capital adequacy ratio (CAR) of 23.4 percent. Its net profit after tax in the second quarter of 2014, grew 1.9 percent to Rp502 billion from Rp493 billion in the first quarter in the same year. The net profit, however, fell 10 percent in the first half of 2014 from the same period in 2013 -- down to Rp996 billion from Rp1.1 trillion. In the coming months, the country is still expected to face difficult period in macro economic development, he said. "But we would continue to be focused on expanding our market in low income people," he said.