Bank Mashill gets two new executives
JAKARTA (JP): Bank Mashill Utama yesterday appointed Muliadi Hendri as a new director and Dorodjatun Kuntjoro-Jakti as a new commissioner, respectively replacing Jensen Kohardjo and Iskandar Koharjo who had declined to be re-elected.
"The new executives were nominated by the Kertawidjaja family, who owns a 51 percent stake in the bank, not by two new major shareholders -- Castlemere Enterprises Ltd. and Duncanmill Holdings Inc.," Bank Mashill's president, A.T. Windoe, announced after a shareholders' meeting yesterday.
Windoe added that 95 percent of the bank's shareholders approved the election but he declined to explain the reason for Koharjo stepping down.
"All I know is they have ended their term today and declined to be re-elected," Windoe said.
Jensen Koharjo is a commissioner of PT Sumatra Central Prima, a major shareholder which sold its 23 stake in the bank in early April, together with some other shareholders.
The controversial share transactions which were flavored by "hostile takeover" rumors not only drew the interest of many parties, including House of Representative members, but also forced the Capital Market Supervisory Agency to investigate the parties involved in the deals.
From the investigation, the agency found strong indication of insider trading because of Jensen's role, and fined Sumatra Central Rp 500 million for the alleged insider trading.
Windoe said that as of yesterday Bank Mashill's major shareholders were PT Mashill Asia Fiance (with a 40 percent interest), PT Putra Kertawisejati (10 percent), Duncanmill (17.64 percent) and Castlemere (16.55 percent).
The bank's financial report showed that as of the end of last year, the five major shareholders were Putra Kartawisejati (27 percent), Sumatra Central Prima (23.9 percent), Mashill Asia (16.9 percent), Janti Tutty Sujarti (6.44 percent) Maxmerit Holdings Ltd. (6.29 percent).
Anton Widjaja of the Kertawidjajas, who is on the bank's board of directors, said that the management will not change the bank's purpose despite a major change in the composition of shareholders.
"We will not give special treatment to any shareholders. Our main concern is how to increase shareholders' value," Anton noted.
Anton, however, declined to say if the management had taken steps to buy out Duncanmill and Castlemere in the likelihood that the firms wished to divest themselves of their shares because of their failure to take control of the bank.
"We are a public bank. So, we have no right to prevent or to force any of our shareholders to sell their position. It's also their right to sell their stakes," Anton added.
Performance
Commenting in the bank's performance, Anton said that as of last December, Bank Mashill's total loans reached Rp 967 billion (US$412 million), while funds generated from the public amounted to Rp 843 billion.
"We expect a 30 percent credit expansion and 38 percent increase in deposits this year," he added.
The bank booked Rp 16.8 billion in net profit last year, only a 1.9 percent increase from 1994's Rp 16.5 billion although its net interest revenue rose 47 percent to Rp 55 billion.
The bank's total assets grew by 50 percent to Rp 1.2 trillion as of last year-end from Rp 821 billion in the previous year.
He said that for the first quarter of this year, the bank recorded Rp 4.5 billion in net profit, indicating an increase of 13 percent from the same period of last year.
Bank Mashill's capital adequacy ratio declined from 15 percent at the end of 1994 to 11 percent last December.
The bank's shareholders, according to Anton, yesterday also approved a proposal on the distribution of dividends of Rp 50 per share for the year 1995, totaling Rp 5.4 billion or 32 percent of the bank's total net profit. (alo)