ANZ intends to increase stake in Panin Bank

ANZ intends to increase stake in Panin Bank

Australia and New Zealand Banking Group Ltd. (ANZ) chief executive John McFarlane said Friday the group intended to increase its stake in Indonesia's Panin Bank.

ANZ currently owns 11 percent of the Panin Bank and has an option to increase this to 29 percent.

"It is our intention to exercise those options and we will do it when we feel it is right," McFarlane told reporters.

Panin Bank is competing with three other consortia including Malaysian financial group Commerce Asset-Holdings Berhad, local Bank Victoria International, and Batavia Investment Fund for a government 51 percent stake in mid-sized Bank Niaga.

The Indonesian Bank Restructuring Agency (IBRA) has targeted the divestment process to be completed in June.

Panin Bank, a mid-sized bank focusing on retail banking, is one of the few local banks which have managed to relatively survive the 1998 financial crisis without having to rely on government bailout program.

The price of Panin Bank shares on the Jakarta Stock Exchange has risen from around Rp 185 per share early this year to around Rp 600 lately. The stock ended slightly lower at Rp 575 on Friday.

Earlier Friday, ANZ unveiled a record interim net profit of A$1.05 billion.

McFarlane said the group's 17 percent rise in net earnings was credible in light of the subdued domestic climate, the international recession, and the collapse of U.S. energy trader Enron Corp. -- Dow Jones