CORRECTED-Indonesia's Bank Tabungan sees 28 pct rise in net profit for 2014

Wed May 21, 2014 7:21am EDT

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(Corrects net profit in 2013)

JAKARTA May 21 (Reuters) - Indonesia's Bank Tabungan Negara expects its net profit to rise by 28 percent this year on higher fee-based income and cheap loans, its president director said on Wednesday.

The lender, which focuses on loans for subsidized housing, sees net profit of 2 trillion rupiah ($174.1 million) in 2014 versus 1.56 trillion rupiah a year earlier, Maryono told reporters at a briefing.

Bank Tabungan will also issue around 4 trillion rupiah worth of bonds and securities assets to boost liquidity and help achieve its target of a 17 percent loan growth this year, Maryono said.

Bank Tabungan shares have come under pressure after Indonesian Cabinet Secretary Dipo Alam last month called for a delay in the planned acquisition of the lender by PT Bank Mandiri, Indonesia's biggest bank by assets.

"The acquisition is under government authority, but we will still grow in terms of loan and profit whether that plan goes ahead or not," Maryono said.

Moody's Investors Service said in February that Indonesian banks will continue to report strong financial fundamentals, including high profitability and capital levels, despite the economic slowdown that will put some pressure on asset quality. ($1=11,487.50 rupiah) (Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata Editing by Matt Driskill)

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