Bank Pan Indonesia, the country's seventh-largest lender, reported nine-month profit rose almost 4 percent on strong loan demand by consumers and corporations across the nation.
Net income at Bank Panin, as the lender is known, rose 3.8 percent to Rp 1.93 trillion ($172 million) in the January-September period from a year earlier.
Many Indonesian lenders announced stellar profit growth this year, even as the central bank tightened its monetary policy to arrest rupiah decline against the dollar and stop rising inflation.
Net interest income — derived from the difference in the interest the bank charges its customers and what it pays depositors — also increased 9.8 percent to Rp 4.49 trillion this year.
Indonesia's central bank has increased its benchmark rate by 150 basis points since June to 7.25 percent in a bid to help arrest the rupiah's decline against the dollar and contain rising inflation.
Still, such measures have not reduced the appetite of Indonesia's consumers and corporations seeking loans to fund their expansion plans in the country.
Rising interest rates in Indonesia appear to have had a negligible effect on Bank Panin's profits.
Total outstanding loans at Bank Panin at the end of September rose 12.6 percent to Rp 110.09 trillion from a year earlier.
Bank Mandiri and Bank Central Asia, two of the country's biggest lenders, also posted strong earnings growth in the first nine months, the banks announced on Wednesday.
Bank Panin has been targeted for an acquisition by a Japanese lender.
Reuters reported early this month that the Mizuho Financial Group, Japan's second-biggest bank by assets, has approached Australia and New Zealand Bank to buy ANZ's 39.2 percent stake in Bank Panin, valued at $570 million, in order to bolster its expansion in the Southeast-Asia region.
Shares of Bank Panin fell 2.7 percent to Rp 720 on the Indonesia Stock Exchange in Jakarta on Thursday.
Bank Panin is controlled by the Mukmin Ali Gunawan family.
