Indonesia banks report profits, loan growth targets

Danamon Q2 net profit down 20 pct to 477 bln rupiah

* Danamon Q2 net interest income up 25 percent

* BNI Q2 net profit more than doubles

* BNI Q2 net interest income up 19 percent

* BNI revises loan growth target to 14 pct from 16-18 pct

JAKARTA -
Two Indonesian banks on Thursday reported profits for the second quarter but indicated that the lending environment in Southeast Asia's biggest economy remains difficult amid a global economic slowdown.

The country's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), said second-quarter net profit fell 20 percent to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago, citing the high cost of funds and credit.

"In the first half 2009 compared to first half 2008 there was a drop mainly because of high cost of funds we experience in the first quarter of this year and also high cost of credit across the banking sector in indonesia," said Danamon's President Director Sebastian Paredes.

Net interest income in the second quarter climbed 25 percent to 2.345 trillion rupiah from 1.88 trillion rupiah a year earlier.

The lender reported a gross non-performing loan (NPL) ratio of 3.5 percent in the January-June period, compared to 2.3 percent a year ago.

PT Bank Negara Indonesia, the fourth-largest lender, said net profit doubled in the second quarter but it revised its loan growth target for 2009 down to 14 percent, from a previous forecast of 16-18 percent, saying that first-quarter lending was not as high as expected.

"In the first quarter we did not see a pick up in lending so we take a more conservative figure of 14 percent until the end of 2009," said President Director Gatot Suwondo in a news conference.

Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. They expect BNI to post a net profit of 2.219 trillion rupiah, up from 1.222 trillion last year. ($1 = 10,095 rupiah)

BRI Disbursed Rp 20 Trillion to State Companies

JAKARTA- Bank Rakyat Indonesia (BRI) said it disbursed Rp20 trillion out of Rp30 trillion (US$3 billion) in new credits approved by the state lender to other state companies in the first half of this year.

Sofyan Basir the president of the state lender said demand for credits was weak and the bank management is more selective in disbursing new credits.

Sofyan said BRI has pledged new credits to 60 borrowers among state companies this year including those operating in telecommunications, electricity, and cement sectors.
He said all of the credits are syndicated involving mainly other major state banks like Bank Negara Indonesia and Bank Mandiri.

Bank Negara Indonesia to lend another US$25.6 mln to shipbuilder

JAKARTA-

PT BANK NEGARA INDONESIA (BNI) has agreed to provide additional loan of US$ 25.6 million for state shipbuilding company PT PAL INDONESIA.

PT PAL will use the fund to build four tankers on orders from Turkey and Italy, Gatot Murdianto Suwondo, the president of the state bank , which already provided a loan of US$ 83 million earlier for PT PAL.

Gatot said the two state companies have reached an agreement that BNI will finance projects to be built by PT PAL. April 02, 2009.