REPUBLIKA.CO.ID, JAKARTA - Profit of Commercial banking in Indonesia is recorded at 42.7 trillion IDR or grow 17.45 percent until May 2013 compared to the same period last year.

"The profit comes from low cost funds and credit expansion which is still fairly high. Net interest margin is also wide and has high advantage," Economists of Atma Jaya Catholic University of Indonesia, Agustinus Prasetyantoko said on Wednesday.

According to Indonesian Banking Statistic, the banking credit grew lower as now is recorded at 2,909.09 trillion IDR. Net interest margin is down from 5.53 percent to 5.41 percent. Even so, the number was still good.

As BI increased its benchmark of interest rate from six percent to 6.50 percent, Prasetyantoko predicted that national banks would not enjoy high earning growth in this second half of 2013. Bank earnings would likely fall and its growth would not be more than 12 percent. Bank earning would grow again if economy could improve in 2014 to encourage growth of credit. 

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