Indonesia`s bank CIMB Niaga reports sharp fall in net profit

Publicly listed bank PT Bank CIMB Niaga (JSX:BNGA), the product of a merger in November between PT Bank Niaga and PT Bank Lippo, reported a sharp fall in net profit in the first 11 months of that year.

In separate financial reports, the net profit of Bank Lippo plunged 74 per cent to Rp140.51 billion (US$12.78 million) and meanwhile, the net profit of Bank Niaga fell 13 per cent to Rp593.71 billion. Combined, the net profits of the two banks fell 40 per cent from Rp1.23 trillion to Rp734.22 billion.

Bank CIMB Niaga director Catherine Hadiman said an increase in personnel burden, in the form of merger compensation for employers, was the main factor causing the decline in profit