Bank Commonwealth to open more branches

Bank Commonwealth to open more branches

JAKARTA (JP): The Australia-based Bank Commonwealth, formerly
known as Bank BII Commonwealth, will open four new branches this
year as part of its expansion program.

The bank's president Llew Morris said on Tuesday that two new
branches would be opened in Jakarta and two more in Surabaya and
Medan.

He said the bank would also relocate its Jakarta head office,
currently in the Plaza BII building, to Wisma Metropolitan in
March this year.

"With this expansion, we expect our profits to jump a 100
percent to Rp 19.3 billion (US$2.05 million) from Rp 9.63 billion
in 2000," he told a press briefing after the launching of the
bank's new name.

The bank changed its name to Bank Commonwealth from Bank BII
Commonwealth in September following the takeover of BII's 50
percent stake by its parent company Commonwealth Bank of
Australia.

Morris said the Australian bank controlled 99 percent of the
bank while the remaining 1 percent was held by the bank's
workers.

Bank Commonwealth, which was established in 1997 in
cooperation with BII, has shown robust growth during the last
three years.

The bank's total assets rose nearly 70 percent to Rp 999
billion in 2000 from Rp 594 billion in 1999. But its after-tax
profits show a decline from Rp 12.96 billion in 1999 to Rp 9.63
billion in 2000.

Morris said the bank would focus on retail rather than
corporate services as its major source of revenue.

The bank has adopted the strategy of its parent company in
providing retail services in Indonesia, he said, adding that the
Commonwealth Bank of Australia had successfully developed retail
banking in Australia and New Zealand with customers reaching 10
million at the end of last year.

Morris said the bank had also allocated Rp 2 billion for
promotions this year.

Director of Banking Product and Marketing Djumali Widjaja said
Bank Commonwealth expected its customers to exceed 10,000 by the
end of this year from 6,000 as a result of the expansion. (05)