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)