Monday, July 27, 2009

Bank Century's NPL 43%

The troubled Bank Century reported gross non-performing loan (NPL) of 42.96% as of June 2009 against 3.13% in June 2008 while net NPL at 7.3%.
According to the bank's un-audited financial report, loss category loan reached Rp4.68 trillion, consisted of marketable securities (Rp1.858 trillion), loans to third party (Rp1.71 trillion), and other receivables from third party at Rp1.1 trillion.
The bank, hit by fraud allegedly committed by its former shareholders, booked net interest income of Rp13.6 billion in the first half 2009 and other operational income of Rp17.29 billion. With human resources cost of Rp54 billion and administration/general expenses of Rp48 billion, the bank should have booked operating loss. But the company's book "improved" only with income from provision of productive assets write-offs (Rp172 billion). 
As a result, Century reported operating profit of Rp74.88 billion against Rp45 billion in H1 2008. Combined with non-operational income, the bank finally booked net profit of Rp139.99 billion in H1 2009. But with retained loss of Rp8.76 trillion, it's unclear how the bank would repay Rp6.76 trillion (US$670 million) funds injected by Lembaga Penjaminan Simpanan (Depositors Insurance Co) as temporary capital.




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