(Corrects net profit in 2013)
JAKARTA May 21 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,
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.
(Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata
Editing by Matt Driskill)