Bank NISP plans bank takeovers

JAKARTA (JP): Publicly-listed Bank NISP plans to take over several smaller banks to strengthen its domestic networks, the bank's managing director said yesterday.

Pramukti Surjaudaja said yesterday the bank would issue rights shares to help finance the acquisitions.

The bank expects to raise around Rp 100 billion (US$43.47 million) from the rights issue, Pramukti said at a meeting with securities analysts.

He said the rights issue would be launched next year. He did not give further details on the acquisition plan.

Pramukti said the bank planned to increase its number of branches to 55 by the end of 1997 from the 45 it expects to have by the end of this year.

With the expansion program, the bank expects its profits for 1997 to reach Rp 39.9 billion, up from an initial projection of Rp 24.6 billion.

The bank's net profit for 1996 was projected to increase to Rp 20.3 billion from Rp 17.2 billion for 1995, he said, adding that by June 30, net profit had reached Rp 13.93 billion.

Bank NISP's net profit for the first nine months of this year totaled Rp 14.8 billion, up 7.2 percent from Rp 13.8 billion for the corresponding period last year, Pramukti said.

Earnings per share dropped 12 percent to Rp 270 last year on the impact of the issuance of the bank's bonus shares.

Bank NISP's share price on the Jakarta Stock Exchange gained yesterday to close at Rp 2,650 from Rp 2,550 on Wednesday.

The bank's customer base is in West Java, with 60 percent of its customers in Bandung and surrounding areas. The remaining 40 percent are in Jakarta, Central Java, East Java and Batam.

The bank's shareholders are Karmaka Surjaudaja, who owns 0.08 percent, PT Suryasono Sentosa (39.96 percent), PT Udayawira Utama (39.96 percent) and public shareholders (20 percent). (alo/pwn)