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Loans business fuelled I’nesian banks’ Q1 growth

Posted by Rattana_S On July - 31 - 2013 ADD COMMENTS

Indonesia’s largest lenders – Bank Mandiri, Bank Central Asia (BCA), CIMB Niaga and Bank Internasional Indonesia (BII) – enjoyed higher net profit growth during the first half of this year, supported by robust loan disbursements.

State-owned Mandiri, the biggest bank by assets, announced on Monday that its net profits surged by 16 per cent to 8.3 trillion rupiah (Bt25.27 billion) between January and June, thanks to increases in both net interest and fee-based incomes generated from higher loans.

Mandiri president director Budi Gunadi Sadikin said the bank’s net interest income surged by nearly 20 per cent to 15.14 trillion rupiah, while its fee-based income increased by 13.8 per cent to 6.52 trillion rupiah.

Mandiri finance and strategy director Pahala N Mansury said all of the bank’s loan segments recorded an increase during the first half, with micro credit making the highest leap, thanks to the growing number of micro-scale entrepreneurs.

“Among all the other segments, micro credit recorded the highest growth with a 58.1 per cent rise to reach 23.9 trillion rupiah,” he said.

Mandiri’s business banking segment rose 28.2 per cent to 42.5 trillion rupiah, the corporate segment 17.8 per cent to 124.3 trillion rupiah, the commercial segment 16 per cent to 104.2 trillion rupiah and the consumer segment 21.1 per cent to 52.4 trillion rupiah.

Meanwhile, BCA – the largest private lender – posted a 19.3 per cent growth in net profits to 6.3 trillion rupiah compared to the same period last year, supported by higher net interest income and fee-based income.

Its net interest income rose by almost one-fourth to 12.3 trillion rupiah and its fee-based income by 16.8 per cent year-on-year to 3.4 trillion rupiah.

During the first half of the year, BCA’s loan portfolio increased by 24 per cent to 280.4 trillion rupiah. Commercial and small and medium enterprises made up the biggest chunk of the loans with almost 40 per cent of the total.

BCA president director Jahja Setiaatmadja said the bank’s loan achievement was better than expected as credit disbursements in the first quarter were usually slow.

He, however, did not explain what had made the bank surpass its initial estimate of 20 per cent loan growth.

Separately, CIMB booked unaudited net profits of 2.13 trillion rupiah in the first half of this year, up by 8 per cent from the same period a year before, following a 5 per cent increase in net interest income (NII) to 4.92 trillion rupiah.

CIMB president director Arwin Rasyid said that amid higher inflation and the recent hike in interest rate, the bank managed to increase its loans and third-party funds.

The bank’s credit rose by one-tenth to 150.95 trillion rupiah between January and June, with the commercial segment contributing the most to the loan portfolio with 41 per cent, followed by the consumer and corporate segments with 31 and 28 per cent, respectively.

Similar to Mandiri, CIMB’s micro loans also recorded the highest growth in the first half. Micro loans grew by 35 per cent year-on-year to 2.37 trillion rupiah.

Meanwhile, BII saw its net profits rise by 15 per cent to 681 billion rupiah during the same period.

BII president director Khairussaleh Ramli said the bank’s first half results were in line with the industry’s expectation. In the second quarter, its loans grew by 16 per cent to 85.1 trillion rupiah and its third-party funds climbed 19 per cent to 91.1 trillion rupiah.

Although the banking industry enjoyed hefty profits in the first half, a bumpy road awaits the industry players following Bank Indonesia’s (BI) decision to increase its key rate by 50 basis points to 6.5 per cent earlier this year.

Mandiri chief economist Destry Damayanti earlier said total loan growth would fall by 1.04 per cent “for every 1 per cent increase in the BI rate”.

Their Majesties the King and the Queen will leave Siriraj Hospital for their Hua Hin Palace on Thursday.

Prachuab Khiri Khan Governor Veera Sriwatanatrakul said HM the King and the Queen will leave Bangkok hospital at 4pm.

The provincial authorities and people are very excited and pleased that their Majesties will come to stay at Krai Kangwon Palace. All preparations are in place to welcome both of them, he said.

The King was admitted to the hospital in September 2009, for treatment of a respiratory condition while the Queen was treated for unusual regular heartbeat in 2012.

Oil-spill recovery will be tough: experts

Posted by Rattana_S On July - 31 - 2013 ADD COMMENTS

Academics have predicted a grim scenario for ecological systems hit by the oil spill in the Gulf of Thailand, including those around Koh Samet’s Ao Phrao beach.

“It’s going to be difficult to rehabilitate the affected areas,” Phaithoon Mokkongpai of Burapha University said yesterday.

About 50 tonnes of crude oil leaked from an offshore pipeline on Saturday, spilling into the sea off Rayong.

In a bid to break up the oil slick,…

The child they call ‘fish boy’

Posted by Rattana_S On July - 31 - 2013 ADD COMMENTS

THIS eight-year-old has been nicknamed ‘fish boy’ by neighbours – because he’s covered from head to toe in thick, itchy scales.

Pan Xianhang was born in Wenling, China with a rare genetic skin disease known as Ichthyosis, after the ancient Greek word for fish.

Most sufferers develop dry scaly skin across part of their body, but Pan’s case is severe: his scales have affected the shape of his eyes, nose, mouth and ears – and they limit the movement of his arms and legs.

The condition also means he’s in constant pain and struggles to sleep at night because of the itching.

Sufferers are treated with creams, oils and moisturisers, which are designed to hydrate the skin.

Liz Dale a spokesperson for the UK-based Ichthyosis Support Group said: “There is no known cure and treatments for ichthyosis are predominantly keeping the skin moisturised with plenty of emollients i.e. lotions and creams.

“The skin needs to be moisturised to prevent it from further drying out, which could cause the skin to crack, making it more prone to infection, which may be fatal.”

Last year, Channel 5 documentary The Boy They Call Fish, followed the plight of Vietnamese teenager Minh Anh, who was abandoned as a baby after he was born with a severe form of Ichthyosis.