REPUBLIKA.CO.ID, JAKARTA -- Publicly traded lender Bank Permata recorded a 19 percent increase in income in the first nine months of the year, but its net profit shrank 24 percent from the same period last year.

"The third quarter was a difficult period for the banking industry as a result of the economic slowdown, shrinking consumption, and geo political and macro economic uncertainty," Finance Director of Bank Permata Sandeep Jain said in a statement here on Wednesday.

Unaudited operating income (consolidated) of the bank totaled Rp6.34 trillion in the first nine months of the year, up from Rp5.32 trillion in the same period last year.

Its net profit reached Rp938 billion or 24 percent lower compared with the same period last year.

Unfavorable macro economic condition had impact on the quality of the bank's assets marked with an increase in its both gross and net non performing loans (NPL).

Its gross NPL grew from 1.44 percent to 2.5 percent by Sept. 30 this year and its net NPL rose from 0.75 percent to 1.33 percent.

With the growing NPL, its provision expense rose 226 percent year on year to Rp1.64 trillion . The condition is expected to last until the last quarter of this year.

By 30 September 2015 its assets were valued at around Rp194 trillion , up 5 percent from Rp185 trillion a year earlier, driven by conservative credit expansion of 2 percent to Rp133 trillion in outstanding credits by the end of September 2015.

Credits for the automotive sector was the main contributor to the increase in outstanding credits.

Sandeep said Bank Permata continued to manage its liquidity at a safe level with third party fund rising in proportion with credit expansion two percent yoy to Rp151 trillion - resulting in a Loan-to-Deposit ratio (LDR) of 88 percent.

Its operating income rose 19 percent driven by a healthy growth recorded in net interest income and fee based income.

Its net interest income rose 20 percent to Rp4.91 trillion from Rp4.10 trillion yoy and its fee based income increased 18 percent to Rp1.43 trillion from Rp1.22 trillion yoy thanks mainly to good performance in bancassurance, trade finance, treasury and impact of capital participation in PT Astra Sedaya Finance ("ASF").

The performance of Bank Permata is determined by a decline in the quality of assets that it was forced to set aside higher loan impairment charges, Sandeep said.

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