Bank Permata reports higher pretax profits
The Jakarta Post, Jakarta
Bank Permata reported on Friday higher than projected pretax profits for 2003, on the back of higher interest earnings.
The bank said in a report to the Jakarta Stock Exchange its unaudited profit before taxes last year was Rp 533 billion (US$63.45 million), much higher than the Rp 218.8 billion targeted in the bank's business plan for the year.
The profit also marked a significant turnaround from a loss of Rp 847 billion in 2002, when the bank had just completed the merger process. Permata was formed two years ago by merging five ailing banks under the control of the Indonesian Bank Restructuring Agency (IBRA).
Permata said net interest earnings last year increased to Rp 1.14 trillion as interest on time deposits and savings fell amid declining domestic interest rates, while its loan assets improved.
The publicly listed bank said it channeled about Rp 9.69 trillion in loans last year, mainly to the retail and consumer sectors and to small and medium-scale enterprises.
Permata now has total assets of Rp 28.98 trillion, making it the seventh largest bank in the country. Its capital adequacy ratio as of the end of last year reached 10.78 percent, well above the central bank's minimum requirement of 8 percent. The bank's non-performing loan ratio (net) stood at 2.91 percent, compared to the 5 percent limit set by Bank Indonesia.
IBRA, which holds a 91.3 percent stake in Permata, plans to sell 71 percent of its shares in the bank: 51 percent to strategic investors and 20 percent to public investors.
But the agency may not be able to complete the sale prior to its closure on Feb. 27, as lawmakers continue to delay approval for the sale.
During a meeting with IBRA and Ministry of Finance officials late on Thursday, House of Representatives Commission IX for finance once again failed to approve the sale.
If IBRA cannot conclude the sale by Feb. 27, a new agency under the Ministry of Finance will take over the bank and carry out the divestment plan.