Bank Universal decides not to pay dividend
Bank Universal decides not to pay dividend
JAKARTA (JP): Publicly listed Bank Universal, a subsidiary of
widely diversified Astra International, will not pay a dividend
for the company's 1997 earnings in a move to safeguard its
capital, its president said yesterday.
Stephen Z. Satyahadi said a proposal on not paying the
dividend was one of several corporate plans approved by the
bank's shareholders in an annual shareholders meeting yesterday.
He said that all the bank's profits last year would be used to
strengthen its capital as a crucial business strategy to enable
the bank to weather the economic crisis.
"Our chief commissioner, Bapak Sumitro Djojohadikusumo, said
that a bank with stronger capital would survive longer, and our
shareholders agreed with him. I hope the effort will enable our
bank to cope with the current crisis," Stephen said.
Bank Universal's net profit plunged 52.62 percent to Rp 10.39
billion last year from Rp 21.94 billion in 1996.
Stephen said the decline was partly due to the increase in the
company's operation costs.
He added that its total assets as of December last year rose
to Rp 5.74 trillion, an increase by 65.67 percent from its figure
last year. Its capital last year rose by 328 percent to Rp 535.34
billion from 162.78 billion in 1996.
Stephen also announced that as of May 20, Bank Universal was
83.74 percent owned by publicly listed PT Astra International,
3.69 percent by PT Prahabima, 2.10 percent by PT Telkom's Pension
Fund Foundation, 1.05 percent by Bank Negara Indonesia's Pension
Fund and 0.35 percent by Nomura Singapore Ltd. The remaining 9.07
percent is owned by the public.
Stephen said former president Soeharto's daughter Siti Hediati
Prabowo only held 0.92 percent of Bank Universal's total stake
through her ownership in PT Prahabima.
He added that PT Prahabima was owned by Sumitro
Djojohadikusumo's family, whose son Prabowo is Siti Hediati's
husband.
"Hediati's stake in bank Universal is only 0.92 percent. She
even holds it through her ownership in her father-in-law's
company PT Prahabima."
He said Bank Universal was managed professionally and had
been appointed by the government as one of 31 banks to issue
letters of credits (L/Cs) backed by U.S credit guarantees.
Bank Universal director Jerry Ng said the company suffered a
loss of approximately Rp 56 million due to damage to its six
branch offices in Jakarta in riots last month.
"But the loss will not affect our performance this year
because it is so little compared to our profit," he said. He
added that the company expected flat growth this year.
Bank Universal booked Rp 7 billion in earnings after tax in
this year's first quarter. Its assets stood at Rp 7.73 trillion
as of March 30. (gis)