Bank Surya optimistic about profit target

JAKARTA (JP): Publicly listed Bank Surya, a subsidiary of the Golden Truly Group, booked a Rp 15.58 billion (US$6.38 million) pretax profit for the January to May period, up about 10 percent on the same period last year.

Bank Surya's president A.K. Ariawan said yesterday a pretax profit of Rp 40 billion for 1997 was achievable.

"With the steady growth in the profit in January to May, we expect to meet the profit target this year," Ariawan said after the company's shareholder annual meeting.

He said his company expected an increase of between 20 and 25 percent in income and pretax profit this year.

Pretax profit rose 34 percent to Rp 31.1 billion in 1996 from Rp 23.23 billion the previous year.

"The increase will be caused mostly by our conservative strategy in asset growth," he said.

Bank Surya is 84 percent owned by PT Dwi Golden Graha and the remaining 16 percent by the public.

Last May, the bank split the nominal value of its shares from Rp 1,000 to Rp 500 each.

The stock split doubled the number of the bank's shares to 200 million.

Ariawan said the bank's net profit rose 34 percent to Rp 21.84 billion last year, while its assets rose to Rp 1.47 trillion from Rp 1.11 trillion in 1995.

Its capital adequacy ratio was 12.72 percent, from 14.27 percent, he said.

Deposits rose 31.36 percent last year to Rp 1.18 trillion from Rp 861.80 million.

At yesterday's meeting, shareholders approved paying Rp 7 billion in dividends. The dividend will be Rp 35 a share.

The bank lends money to the trade, industry, transportation services, construction, agriculture and mining sectors.

Ariawan said Rp 727.25 billion credit went to the trading sector last year, and Rp 98.96 billion to the service industry. (das)