Jakarta (Admin). InfoBank announced on Monday that the assessment conducted by its research team on 130 banks in Indonesia has resulted in a finding that 92 banks were entitled to the status of "Excellent".
The 130 banks assessed were those meeting the standards of the Indonesian Banking Architecture (API), i. e. minimum assets of Rp 80 billion.
The assessment was based on five criteria: capital adequacy ratio (CAR), earning assets, profitability, liquidity, and efficiency, measured based on the published financial statements of the last two years.
In the assessment, the research team divided the banks into three categories based on the size of capital in accordance with Indonesian Banking Architecture, i.e. Rp 10-50 trillion, Rp 1 trillion to Rp 10 trillion, and 100 billion- Rp 1 trillion.
For banks with capital above Rp 10 trillion to Rp 50 trillion, Bank Danamon was ranked first, followed by BRI and BCA.
For banks with capital of Rp 1 trillion and Rp 10 trillion, Bank UOB Indonesia was ranked first, followed Bank Mizuho Indonesia, Bank Niaga, Citibank, and Bank Tabungan negara (BTN).
Meanwhile, for the categories of banks with the capital of Rp 100 billion to Rp 1 trillion, the first rank was won by Bank Woori Indonesia, followed by Bank Saudara, Bank BTPN, Bank Kesejahteraan Ekonomi, and Bank Pembangunan Daerah (BPD) Bali.
Infobank's studies revealed that the banking profit has enjoyed a significant increase of 23.58% to Rp 28.82 trillion in 2006 from Rp 22.65 trillion in 2005.
The increase in profit was attributable to macroeconomic stability that supported the growth for the banking sector, the bigger decline of deposit interest rates as compared to lending rates, and more aggressive banking activities to boost "fee-based income."