Permata Bank Posts Rp 621 Billion in Profit

Bank Permata achieved a profit of Rp 621 billion in the first half of 2017, compared to a loss of Rp 835 billion in the same period the previous year. The sale of financial assets from credit cleanup worth Rp 634 billion was one of the main factors supporting Bank Permata's profitability in the first six months of this year.

Bank Permata's financial report for June 2017 shows that net interest income for the company (trading code BNLI) decreased by 13 percent in the first half of the year to Rp 2.67 trillion, from Rp 3.08 trillion in the first half of the previous year. Meanwhile, Bank Permata's Non-Performing Loan (NPL) ratio decreased to 4.72 percent in the first half of 2017, compared to 6.61 percent in the first quarter of 2017 and 8.83 percent at the end of December 2016.

Increased provisions for loan losses due to a surge in non-performing loans resulted in a Rp 6.5 trillion loss for this Astra International subsidiary in 2016. Provisions for impairment losses at Bank Permata in 2016 soared to Rp 11.26 trillion from Rp 3.9 trillion the previous year.