Lippobank reports 32% increase in profit<\/p>\n
JAKARTA (JP): PT Lippobank, affiliated with the Lippo Group,
\nyesterday announced a 32.3 percent increase in its after-tax
\nprofit to Rp 42.43 billion (US$19.72 million) last year from the
\nprevious year.<\/p>\n
\"Our before-tax profit also showed a significant climb to Rp
\n66.04 billion from Rp 48.94 billion,\" Lippobank's vice president
\nEddy Handoko told reporters after an extraordinary meeting of the
\ncompany's shareholders here yesterday.<\/p>\n
\"We expect that our profit will grow by over 25 percent this
\nyear due to the improved business climate,\" he said.<\/p>\n
He pointed out that the increase in profits was partly caused
\nby a sharp jump in the bank's fee-based revenues by 63.5 percent
\nto Rp 37.27 billion.<\/p>\n
\"We are optimistic that the fee-based revenues will grow by
\nabout 30 percent this year,\" he added.<\/p>\n
Handoko said the bank's net interest revenues increased to Rp
\n261.7 billion last year from Rp 218.26 billion in 1992.<\/p>\n
He said the ratio of the bank's return on equity improved to
\n17.49 percent last year from 16.62 percent in 1992, while that of
\nreturn on assets rose to 0.99 percent from 0.93 percent.<\/p>\n
Overseas offices<\/p>\n
Lippobank, which has a subsidiary in Australia and branch
\noffices in Sydney, Bangkok, Kuala Lumpur, Hanoi and Ho Chi Minh
\nCity, reported that its total assets last year surged by 28
\npercent to Rp 4.90 trillion from the previous year.<\/p>\n
He also said that its loan-to-deposit ratio (LDR) stood at
\n83.6 percent last year, far higher than the 69.2 percent of a
\nyear earlier.<\/p>\n
\"We consider last year's LDR as conservative due to our strong
\nloan portfolio,\" he said.<\/p>\n
\"Of our Rp 3.38 trillion loan portfolio, 60 percent was
\nchanneled for retail trading activities, 20 percent for consumer
\nloans and the remaining 20 percent for middle-class business
\nactivities,\" he said.<\/p>\n
According to Handoko, shareholders at yesterday's meeting also
\napproved management's proposal to pay a cash dividend of Rp 60
\nper share on July 9 and to give bonus shares in November.<\/p>\n
For the bonus share scheme, every two existing shares will be
\nentitled to receive one bonus share, he said.<\/p>\n
The bonus shares would be issued from the capitalization of
\nLippobank's agio or the capital gain collected during its public
\noffering in November 1989. The conversion of the agio into its
\npaid-up capital will automatically dilute share prices.<\/p>\n
Handoko also said that yesterday's meeting also approved the
\nbank's plan to move its operational headquarters to the Lippo
\nVillage in Karawaci.<\/p>\n
\"We will soon report the move to Bank Indonesia, the central
\nbank,\" he added.<\/p>\n
He pointed out that the new 20-story headquarters, called the
\nAsia Tower, will cost the company around $13 million.<\/p>\n
\"It will be operational in September or December this year,\"
\nhe added. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippobank-reports-32-increase-in-profit-1447893297",
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