Bank Tiara projects more profit

JAKARTA (JP): Publicly listed Bank Tiara expects to book a net profit of Rp 53 billion (US$22.08 million) in 1997, up 28 percent from Rp 41.1 billion in 1996.

The bank's president Hendrick Kolonas said yesterday interest income was expected to contribute about 70 percent and fee based income 30 percent to the bank's projected net profit in 1997.

"The composition is relatively similar to that in 1996," he said.

He said the bank booked a net profit of Rp 15 billion and gross profit of Rp 21 billion in the first quarter this year.

Hendrick said Bank Tiara, which had recorded total assets of Rp 2.2 trillion as of December 1996, would provide most of its loans to medium businesses this year.

"Bank Tiara's loans have been mostly provided to medium businesses since its establishment in 1989," he said after the bank's annual shareholder's meeting yesterday.

The bank provided loans of about Rp 1.8 trillion at the end of 1996, and 70 percent were channeled to medium businesses, he said.

Hendrick said yesterday's meeting approved a proposal to pay a cash dividend of Rp 75 per share.

The total dividend fund is Rp 13.2 billion.

The meeting also approved a one-for-two split of the bank's stock by halving its nominal value from Rp 1,000 to Rp 500. This will double the number of existing shares.

"The aim of the share split is to increase the liquidity of the bank's stock on the capital market," he said, adding that the number of shares would increase to 1.5 billion from 750 million.

Hendrick said the meeting also approved a change in the bank's board of directors and board of commissioners.

Ign. Herry Wibowo, the bank's former vice president was appointed president, and the former president was appointed vice chief commissioner.

The new board of commissioners is also Mohammad Noer, chairman, Ferry Teguh Santosa, deputy chairman, Hendrick Kolonas, also deputy chairman and Koeswardojo Soemonagoro, a member.

The new board of directors is Ign. Herry wibowo, president, Loeki S Putera, first vice president and I. Bambang Priambodo, second vice president. (09)