Bank NISP to acquire two companies

Bank NISP to acquire two companies

JAKARTA (JP): Publicly listed Bank NISP plans to acquire a
securities and a finance company this year, besides opening 20
new branches, as part of its expansion program.

The Rp 30 billion (US$3.53 million) acquisition will be funded
internally, head of corporate communications Andyani Pusparini
said on Friday.

"We are in the process of negotiations with two security
companies," she said.

She declined to disclose the names of the companies.

Earlier this year, the bank opened four new branches in
Jakarta, Surabaya and Solo, adding to the 64 existing branches in
West Java, Jakarta, Central Java, East Java, Batam and Bali.
Sixteen more will be opened this year in Jakarta, Bekasi,
Tangerang, Surabaya, Medan and Denpasar.

The bank, with assets worth Rp 4.39 trillion ($516 million) at
the end of April, is one of the few in the industry to survive
the financial crisis of 1997-1999 without a government bailout.

Its capital adequacy ratio of 12.33 percent at the end of
April is well above the industry average and the 4 percent
mandated by the government.

Bank NISP president Pramukti Surjaudaja said the bank hoped to
increase its loans to Rp 2.4 trillion this year from Rp 1.27
trillion.

The bank is well within this target, with loans already
reaching Rp 1.91 trillion at the end of April.

Pramukti said total third party funds were expected to
increase to Rp 3.5 trillion at the end of 2000, from Rp 2.74
trillion. At the end of April, the sum had already reached Rp 3.1
trillion.

Bank NISP reported a net profit of Rp 7.95 billion in the
first quarter of 2000, up from Rp 5.9 billion in the same period
a year earlier.

As of April 30, the bank reported a net profit of Rp 14.6
billion. There was no explanation for the sudden jump in the
profit.

On Thursday, NISP received the Asian Banking Award 2000 on
Risk Management Program in Kuala Lumpur.

On Thursday, NISP received the Asian Banking 2000 Award on
Risk Management Programs, in Kuala Lumpur.

"The award will increase our customers' trust. It will be a
challenge for us to maintain it and will whip us into better
shape," Pramukti said on Friday.

NISP was established in Bandung, West Java, in 1941 under the
name of N.V. Nederlandsch Indische Spaar en Depositobank. It is
owned by PT Suryasono Sentosa (38.51 percent), PT Udayawira Utama
(38.51 percent) and by the public (22.98 percent). (10)