March 8, 2018 / 10:14 AM / in 5 months

UPDATE 1-Indonesia's Bank Central Asia 2017 profit rises 13 pct

(Adds details, quotes)

JAKARTA, March 8 (Reuters) - Indonesia’s PT Bank Central Asia (BCA) said on Thursday profit rose 13 percent in 2017, as loans grew and cost of provisioning fell.

The country’s largest bank by market value posted 23.3 trillion rupiah ($1.69 billion) in net profit last year, up from 20.61 trillion rupiah in 2016, the lender said.

It was slightly higher than an average estimate of 23 trillion rupiah in a poll of 20 analysts by Thomson Reuters I/B/E/S.

The bank posted a 4.1 percent increase in net interest income and 11.5 percent growth in non-interest income, it said.

The bank’s loans grew 12.4 percent last year, picking up pace from the 7.3 percent loan growth a year earlier, as both individuals and corporations borrowed more.

Mortgage loans, the biggest contributor to its consumer loans portfolio, grew at nearly double the pace than in 2016, it said.

“BCA’s profitability was further supported by operational efficiency programs and lower provision expense,” said President Director Jahja Setiaatmadja.

Provisions for bad loans dropped 42.3 percent in 2017.

Rival Bank Mandiri posted a 49 percent increase in profit last year after slashing its provisioning costs by 35 percent.

The bank is targeting 9-10 percent loan growth this year, it said, adding it will seek to acquire two smaller banks, part of its business plan for the past few years.

$1 = 13,780 rupiah Reporting by Cindy Silviana Additional reporting and writing by Fransiska Nangoy Editing by Shri Navaratnam and Biju Dwarakanath

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