BCA net profit down 29% in Q4

PT Bank Central Asia its saw 2010 fourth quarter net profit slide 29 percent as net interest income dropped and competition for consumer loans grew.

Indonesia's banking sector is expected to profit from loan growth of more than 20 percent this year in Southeast Asia's biggest economy, but disappointing fourth quarter results by some lenders underscore investor concerns that a rally in banking stocks has been overdone.

BCA, controlled by one of the nation's wealthiest business empires Djarum Group, earned US$138.9 million in the fourth quarter, versus US$194 million in the period a year earlier.

"The result is disappointing," said Ikhsan Binarto, an analyst at Indopremier Securities in Jakarta. "But I think BCA will gain momentum this year as the central bank is starting to increase the interest rate."

BCA said last year it expected loan growth of about 20 percent in 2011.

The bank's full year profit was up 7.4 percent to US$823.9 million, according to an unaudited financial report on the central bank's website on Monday.