Bank Mega Eyes 60% Rise in Lending This Year

Publicly listed Bank Mega is optimistic lending will grow by 60% this year on the back of a surge in demand from corporate borrowers.

The bank's outstanding loans grew by about 10% as of the end of June to Rp11.5 trillion ($1.21 billion) from the same month in 2006, president director Yungky Setiawan said Monday (20/8/07), according to The Jakarta Post.

With the new demand, particularly from corporate borrowers, total lending is expected to jump to about Rp17.6 trillion by the end of December, or an increase of about 60% from Rp10.99 trillion at the end of 2006, he said.

Director for credits Daniel Budirahaju said Bank Mega is currently processing credits of nearly Rp9 trillion, about Rp2 trillion of which had been agreed upon. He said the bank would set aside 45% of total credits for corporations, about 40% for consumers and about 15% for the commercial sector.

With increases in both loans and third-party funds, Bank Mega is optimistic about achieving its target of increasing net income by nearly 400% to Rp750 billion in 2007 from Rp151.7 billion last year.

In the first half, it booked a net income of Rp271.6 billion, an increase of about 280% from Rp71.36 billion in the same period last year.
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