REPUBLIKA.CO.ID, JAKARTA -- Publicly traded lender Bank Bukopin Tbk (BBKP) claimed positive performance with net profit growing in the first nine months of the year.

"Our performance until the third quarter this year is still positive amid uncertainty besetting the economy," president director of the bank Glen Glenardi said.

The bank, which is 11.43 percent owned by the state, recorded profit before tax at Rp977.8 billion in the January-September period.

Its net profit was Rp798 billion , up 17.98 percent from Rp676.6 billion in the same period last year, Glen said here on Wednesday.

Glen attributed the good performance to significant growth in credits with outstanding credit reaching Rp62.7 trillion by the end of the third quarter of this year , or an increase of 24.5 percent from Rp50.4 trillion a year earlier.

The credit expansion is driven by the retail sector credits that grew 22.56 percent to Rp39.59 trillion.

"Credits for the small and medium enterprises (UKM) grew 26.8 percent to Rp25.2 trillion and for micro businesses grew 57.37 percent to Rp7.6 trillion. Consumer credits reached Rp6.8 trillion," he said.

The profit growth target for 2016 is set at 17-20 percent on expectation that the country's economic condition would improve, Glens aid.

"Hopefully the target would be reached as we believe the economic condition would improve," he said.

By 30 September 2015, Bukopin was 30 percent owned by Bosowa Corporindo, 18.09 percent by Kopelindo, 11.43 percent by the government and 40.48 percent by the public.

Glen said he hopes that Bank Indonesia could cut its benchmark interest rate (BI Rate) by 100 basis points to 6.5 percent in 2016 from 7.5 percent at present.

A cut of only 25 basis points would not be enough to stimulate the market with inflation expected to fall to below 5 percent, he said.

He said his bank hope to be able to cut cost of fund in 2016 with lower BI rate.

With cost of fund lower than the present level of 7.23 percent, the bank hopes to chalk up a 17-20 percent increase in profit in 2016, he said.

He said the bank would continue expansion program in 2016 even if the cost of fund remains as at the present level.

The bank's credit markets are mainly UKM, micro enterprises and consumer sector.

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