Lippobank to raise capital<\/p>\n
JAKARTA (JP): Publicly-listed Lippobank announced yesterday
\nthat it is increasing its authorized capital by 40 percent to
\nover Rp 1 trillion (US$443.1 million) to bring its capital
\nadequacy ratio (CAR) to 12 percent.<\/p>\n
The bank said in a statement that the capital increase, which
\nis to be completed by June, is fully underwritten by W.I. CARR,
\nthe merchant banking arm of France's Indosuez Group.<\/p>\n
After the capital increase, the bank's 12 percent CAR will be
\nwell above the 8 percent level required by the central bank, Bank
\nIndonesia, and the Bank for International Settlement.<\/p>\n
Lippobank, listed on the Jakarta and Surabaya Stock Exchanges
\nwith a market capitalization of over Rp 1.3 trillion, is a
\nprivate commercial bank with 290 domestic branches and six
\ninternational representative offices in Sydney, Kuala Lumpur,
\nBangkok, Hanoi and Ho Chi Minh City.<\/p>\n
It has also set up six joint ventures in banking and financing
\nservices with National De Paris, Tokai Limited, Daiwa Bank
\nLimited, Bankers Trust Company and GMAC Finance.<\/p>\n
The company's president, Markus Parmadi, said that the
\nsubstantial capital increase is part of a strategy to be
\naggressive on the capital and liability side of balance sheet but
\nconservative and prudent on the asset side.<\/p>\n
Lippobank also reported a 32.4 percent increase in before-tax
\nprofits to Rp 137.3 billion in 1995 from Rp 103.7 billion in
\n1994.<\/p>\n
The bank's total assets grew by 10.3 percent as of the end of
\n1995 to Rp 7.6 trillion and its loans increased by 11.7 percent
\nto Rp 5.8 trillion. (kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippobank-to-raise-capital-1447893297",
"image": ""
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