BCA Q4 2010 net profit slides 29 pct

* BCA's FY 2010 net profit at 7.3 trln rph-cbank

* BCA's FY 2010 net interest income at 13.48 trln rph

* BCA's Q4 2010 net profit down 29 pct to 1.23 trln rph

PT Bank Central Asia, Indonesia's biggest lender by market value, saw 2010 fourth quarter net profit slide 29 percent as net interest income dropped and competition for consumer loans grew. 

Indonesia's banking sector is expected to profit from loan growth of more than 20 percent this year in Southeast Asia's biggest economy, but disappointing fourth quarter results by some lenders underscore investor concerns that a rally in banking stocks has been overdone. 

BCA, controlled by one of the nation's wealthiest business empires Djarum Group, earned 1.23 trillion rupiah ($138.9 million) in the fourth quarter, versus 1.72 trillion in the period a year earlier, based on a Reuters calculation from a full year figure. 

"The result is disappointing," said Ikhsan Binarto, an analyst at Indopremier Securities in Jakarta. "But I think BCA will gain momentum this year as the central bank is starting to increase the interest rate." 

BCA said last year it expected loan growth of about 20 percent in 2011. 

The bank's full year profit was up 7.4 percent to 7.3 trillion rupiah, according to an unaudited financial report on the central bank's website on Monday. This missed expectations by 22 analysts polled by Thomson Reuters I/B/E/S for full-year 2010 net profit of 8.13 trillion rupiah. 

The bank's full year net interest income was down 10 percent to 13.48 trillion rupiah.

Indonesia's economy beat expectations in the fourth quarter to grow 6.9 percent from a year ago, the fastest pace in six years, though investors took profits in January from last year's 46 percent rally in the benchmark stock index on worries over building inflation and high valuations. 

BCA shares were up 1.6 percent by 0650 GMT on Monday, but have slipped 2 percent this year. 

BCA shares fell 4.5 percent in the fourth quarter, outperforming a near 10 percent drop for the biggest state lender Bank Mandiri in the same period, but lagging an index rally. 

Mandiri posted a 14 percent slump in fourth quarter 2010 net profit, as higher provisioning may have squeezed earnings, according to Reuters calculations based on government figures. ($1 = 8857.5 Rupiah). Source: Reuters