Bank Rama expects net profit increase

Bank Rama expects net profit increase

JAKARTA (JP): Publicly listed Bank Rama expects a net profit
increase of between 10 percent and 20 percent this year to
between Rp 26 billion (US$10.83 million) and Rp 29 billion, the
bank's president said.

Putu Antara said yesterday the moderate profit projection was
in line with low growth in the bank's lending.

Last year, the bank's net profit rose to Rp 23.98 billion from
Rp 22.45 billion.

Putu said his bank's total credit was Rp 826.35 billion as of
December last year, up 22 percent from Rp 677.22 billion in
December 1995.

The bank's deposits surged 55.39 percent to Rp 998.21 billion
last December, from Rp 642.37 billion in December 1995.

The bank's loan to deposit ratio was 71.58 percent last
December, much lower than the 90 percent ideal set Bank
Indonesia.

"Due to over liquidity, we have even asked some of our
customers to deposit their money in other banks," he said.

Putu said the bank would set aside about Rp 10.5 billion of
the 1996 net profit for dividends. "Dividends will be Rp 100 a
share," Putu said.

He said the dividend fund for 1996 rose from Rp 9 billion in
1995.

He said the remaining Rp 13.23 billion would be used to
increase the bank's financing capacity.

Putu said Bank Rama's interest income rose to Rp 171.62
billion in 1996, from Rp 125.84 billion in 1995, while fee-based
income rose to Rp 9.89 billion in 1996, from Rp 7.22 billion in
1995.

Putu said the bank posted a net profit of Rp 4.56 billion in
the first quarter this year, down from Rp 5.9 billion last year.

He said interest income was Rp 49.6 billion in the first
quarter, up from Rp 39.3 billion last year.

Interest costs reached Rp 37.5 billion in the first quarter
this year, up from Rp 25.5 billion last year.

He said Bank Rama had 29 branch offices, but planned to set up
four more by the end of 1997, two in Jakarta, one in Bandung,
West Java, and on in Surabaya, East Java.

He said the bank plans to spend about US$2 million to improve
its information technology services in 1997.

"The facility is aimed at providing on line services to all
branches," Hadi Christianto Wijaya, a director of the bank said.

Bank Rama is 17.56 owned by Joseph Gondobintoro, 16.67 percent
by PT Pendawa Intipratama, 13.58 percent by PT Dwi Kresna, 13.133
percent by PT Gondobintoro Mitragraha, 2.72 percent by Vishnu
Megah, 1.81 percent by PT Akimaru Prima , 1 percent by Ghansam
Jivatram and 33.30 percent by the pubic.

Bank Rama's share remained unchanged at Rp 1,700 yesterday
at the Jakarta Stock Exchange with no transaction. (09)