BNI Hopes to Book Significant Net Profit Increase for 2016

TEMPO.CO, Jakarta - Bank Negara Indonesia (BNI) expected to book an increase in net profit despite of the banks poor performance in 2015. Last year, the state-owned bank recorded a p. 9.1 trillion of net profit, 15.9 percent lower compared to the number recorded back in 2014, which was Rp. 10.8 trillion.

BNI CEO Achmad Baiquni, said that the target was made based on the prediction that the country's economy will recover in 2016. In addition, Achmad said that the government's accelerated budget absorption will also help to boost the bank's performance. "We predict the increase to be in the dozens [of percent]," Achmad said.

Achmad explained that the bank's performance will improve in line with its credit expansion. For 2016, Achmad said that the bank is expected to experience a 16 to 18 percent increase in credit disbursement, especially for the infrastructure and trade sector. Some of the infrastructure projects the bank had put in its list, Achmad said, are toll road and power plant construction. "We hoped that credits in the infrastructure sector will prompt other sectors to grow," Achmad said.

Panji Irawan, Director of Treasury and International of BNI said that the company expects to book Rp 65 to 70 trillion of credit expansion from third party fund. Consequently, to be able to achieve the number, Panji said that the bank must be able to increase the number of third party fund by Rp 5 trillion every month. "To maintain [the bank's] liquidity, we are planning to issue negotiable certificate of deposit and bonds," Panji said.

SINGGIH SOARES