Bank Permata reports higher pretax profits<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Bank Permata reported on Friday higher than projected pretax
\nprofits for 2003, on the back of higher interest earnings.<\/p>\n
The bank said in a report to the Jakarta Stock Exchange its
\nunaudited profit before taxes last year was Rp 533 billion
\n(US$63.45 million), much higher than the Rp 218.8 billion
\ntargeted in the bank's business plan for the year.<\/p>\n
The profit also marked a significant turnaround from a loss of
\nRp 847 billion in 2002, when the bank had just completed the
\nmerger process. Permata was formed two years ago by merging five
\nailing banks under the control of the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
Permata said net interest earnings last year increased to Rp
\n1.14 trillion as interest on time deposits and savings fell amid
\ndeclining domestic interest rates, while its loan assets
\nimproved.<\/p>\n
The publicly listed bank said it channeled about Rp 9.69
\ntrillion in loans last year, mainly to the retail and consumer
\nsectors and to small and medium-scale enterprises.<\/p>\n
Permata now has total assets of Rp 28.98 trillion, making it
\nthe seventh largest bank in the country. Its capital adequacy
\nratio as of the end of last year reached 10.78 percent, well
\nabove the central bank's minimum requirement of 8 percent. The
\nbank's non-performing loan ratio (net) stood at 2.91 percent,
\ncompared to the 5 percent limit set by Bank Indonesia.<\/p>\n
IBRA, which holds a 91.3 percent stake in Permata, plans to
\nsell 71 percent of its shares in the bank: 51 percent to
\nstrategic investors and 20 percent to public investors.<\/p>\n
But the agency may not be able to complete the sale prior to
\nits closure on Feb. 27, as lawmakers continue to delay approval
\nfor the sale.<\/p>\n
During a meeting with IBRA and Ministry of Finance officials
\nlate on Thursday, House of Representatives Commission IX for
\nfinance once again failed to approve the sale.<\/p>\n
If IBRA cannot conclude the sale by Feb. 27, a new agency
\nunder the Ministry of Finance will take over the bank and carry
\nout the divestment plan.<\/p>",
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