Bank Mutiara’s net profit drops, lending grows

JAKARTA. Publicly listed PT Bank Mutiara, previously known as Bank Century, reported that its net profits fell 57 percent to Rp 86 billion (US$9 million) in the first semester of the year from Rp 205 billion in the same period
last year.

The bank attributed the nosedive in net profits to the large provision set aside for bad debts.

According to an announcement published on Thursday, Mutiara reported significant business growth up to the second quarter of the year, with net interest income touching Rp 174 billion during January to June period, a 133 percent jump compared to Rp 74.6 billion in the same period last year.

The bank’s lending grew 25.74 percent to Rp 10.5 trillion compared to Rp 8.3 trillion in the same period last year.

“The condition differs from what happened in the first semester of last year, when the company’s net profits were supported by the recovery of troubled assets inherited from previous management,” the bank said. (The Jakarta Post)