Lippo Bank back in black with profit of Rp 893b<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
Publicly listed Bank Lippo reported a return to the black with Rp
\n892.7 billion (US$95.71 million) in 2004 audited profits, and
\naccepted the resignation of its chief commissioner and founder
\nMochtar Riady.<\/p>\n
Speaking after the bank's annual shareholders meeting on
\nFriday, Lippo president Joseph Luhukay said that the company
\nsurged into profit last year compared to making a loss of Rp
\n515.9 billion in 2003.<\/p>\n
\"The main drivers for the profit were the rise in interest
\nincome with more lending and higher fee-based income,\" he said.<\/p>\n
Net interest income rose 32 percent to Rp 935 billion in 2004,
\nup from Rp 708 billion the previous year, while fee-based income
\nincreased by about Rp 48 billion to Rp 334 billion last year.<\/p>\n
In its audited financial report taken from the bank's website,
\nthe biggest advance was in non-operating profits, which leapt to
\nRp 481 billion after recording a loss of Rp 367 billion in 2003.<\/p>\n
Non-operating revenue increased from about Rp 7 billion in
\n2003 to Rp 485 billion last year, while non-operating expenses
\ndropped from Rp 374 billion to Rp 4.7 billion. The reasons behind
\nsuch large fluctuations were unclear.<\/p>\n
Aside from the financial report, Lippo also appointed
\nChristopher Williams from Swissasia Global -- a consortium led by
\nSwissfirst Bank AG, which acquired the government's 52 percent
\nstake in the bank last year -- as the new chief commissioner
\nreplacing the bank's founder Mochtar Riady.<\/p>\n
Riady said that his stepping down from his post was part of
\nhis family's policy of leaving its businesses interests in the
\nhands of professionals.<\/p>\n
\"I feel that I am obliged to do this so as to make sure that
\nthe company can continue doing business for a long time to come,\"
\nsaid Riady.<\/p>\n
At present, the family's stake in the bank stands at 5.56
\npercent through its publicly listed company PT Lippo E-Net, while
\nthe government owns 2.55 percent of the bank. Retail investors
\nown 39.83 percent.<\/p>\n
For this year, Lippo plans to increase its loan portfolio
\nby between 30 percent and 35 percent to about Rp 7.6 trillion
\nfrom the Rp 5.6 trillion it booked last year.<\/p>\n
\"About 50 percent, or even up to 60 percent, will be allocated
\nfor small and medium enterprises,\" Jos said.<\/p>\n
With this increase, he expected the loan to deposit ratio to
\nrise to over 30 percent this year from less than 23 percent last
\nyear.<\/p>\n
As of the end of 2004, the bank's assets stood at Rp 27.8
\ntrillion, making it one of the top 15 biggest lenders in the
\ncountry.<\/p>",
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