UPDATE 2-Indonesian state banks show mixed results

(Recasts with Mandiri results)

By Andreas Ismar and Harry Suhartono

JAKARTA, Oct 30 (Reuters) - Indonesia's largest lender, PT Bank Mandiri Tbk (BMRI.JK), on Thursday reported a 24.4 percent rise in nine-month net profit, thanks to strong loan growth and improved net interest margins.

But PT Bank Negara Indonesia Tbk (BNI) (BBNI.JK), the number four bank, said net profit for January-September fell 47 percent because of higher provisions for bad debts.

Indonesia's banking sector is expected to show loan growth of around 30 percent for the first nine months, spurred by strong demand from the plantation and mining sectors.

But as the central bank gradually increased its benchmark interest rate BIPG this year to control inflation, analysts are expecting loan growth to slow down towards the year end.

Mandiri posted a net profit of 3.96 trillion rupiah ($375 million) for the January-September period, compared with 3.18 trillion rupiah a year ago. Net interest income climbed 13.7 percent to 11 trillion rupiah.

However, BNI reported nine-month net profit of 832 billion rupiah, down from 1.56 trillion rupiah, despite a 33 percent rise in its net interest income to 7.16 trillion rupiah.

"Going forward, things will be tough. The provisions that we have are like a shock-absorber for the bank because the road that we will pass ahead is an off-road track," Gatot Suwondo, president director of BNI, told a news conference on Thursday.

However, Mandiri's vice president director, Wayan Agus Mertayasa, told a news conference that the bank's strong franchise could help the state lender to weather the tough market conditions.

Shares in Mandiri and BNI both jumped 9.2 percent on Thursday, exceeding a 5.4 percent jump in the Indonesia Composite Index .JKSE. ($1=10,550 rupiah) (Editing by Sara Webb and John Stonestreet/David Cowell)