By Ben Otto

Bank Negara Indonesia posted a 4.3% rise in first-quarter profit as stronger interest income offset a decline in non-interest income and a steep rise in provisioning due to the Covid-19 crisis.

Net profit in quarter was 4.253 trillion rupiah ($288.0 million) compared with IDR4.076 trillion a year ago, the Indonesian state-controlled lender said late Tuesday.

Net interest income rose 7.7% to IDR9.539 trillion, while non-interest income fell 19% to IDR2.091 trillion.

BNI said provisioning amid the Covid-19 pandemic rose 31% to IDR2.271 trillion, with the bank's non-performing loan ratio increasing to 2.4% from 1.9%. Its NPL coverage ratio climbed to 243% from 134%.

BNI said Indonesian banks could face a liquidity challenge throughout 2020 as Covid-19 fears have driven funds from emerging markets to safe havens. The bank now forecasts full-year loan growth of 2%-4%, down from 10%-12% initially, and NPL of 3.7%-4.5%, up from 2.0%-2.2%. 



  Write to Ben Otto at ben.otto@wsj.com