Bapindo publishes financial reports, reveals Rp 1.05t loss
Bapindo publishes financial reports, reveals Rp 1.05t loss
JAKARTA (JP): After a four-year hiatus, state-owned PT Bank
Pembangunan Indonesia (Bapindo) is finally publishing its
financial reports today.
The reports, shown to journalists yesterday, show that the
bank suffered a cumulative carried-over loss of Rp 1.05 trillion
(US$80 million) in the last three years.
Bapindo director Siswanto told journalists that his bank,
which last published financial reports in June 1994, had in fact
booked profits since 1996.
However, because the bank was required to set aside Rp 1.6
trillion for nonperforming loans (NPL) in 1995, all the profits
since then had been allocated to cover the provisions.
Because of such huge NPL provisions, the bank booked a net
loss of Rp 1.53 trillion in 1995.
In 1996, the bank booked a net profit of Rp 463.7 billion.
However, because of the huge carried-over losses, the bank's
bottom line indicated a deficit of Rp 1.16 trillion.
In 1997, the bank again recorded a handsome net profit, of Rp
104.4 billion. And again, due to the carried-over losses, the
bank booked a deficit of Rp 1.05 trillion.
"I believe this deficit of Rp 1.05 trillion can be settled
this year," Siswanto said.
He noted that the bank had huge potential profits from its
foreign exchange holdings but declined to detail how much foreign
exchange it held.
Last year, the bank's operating income from foreign exchange
alone was Rp 776.78 billion, compared to mere Rp 39 billion in
1996.
Furthermore, according to Siswanto, some NPLs were now
performing.
To raise additional funds the bank plans to liquidate some of
Eddy Tansil's private assets, including his houses, appropriated
in 1994.
Tansil, then chairman of the Golden Key Group, was sentenced
to 20 years in prison in 1994 after being found guilty of
embezzling Rp 1.3 trillion from Bapindo. He managed to escape
last year after bribing guards at the Cipinang penitentiary where
he was incarcerated.
The scandal rocked the nation because it involved several
politically well-connected figures.
Following the fiasco, the government restructured the bank by
injecting fresh funds.
Through the Ministry of Finance, its capital was raised to Rp
1.756 trillion, and Bank Indonesia injected another Rp 1.755
trillion, making the bank's total paid-up capital Rp 3.51
trillion.
By the end of last year, the bank's capital adequacy ratio
stood at 20.22 percent, compared to 21.43 percent at the end of
1996.
The bank's total assets stood at Rp 16.75 trillion at the end
of last year, a 16 percent increase from the previous year.
Productive assets stood at Rp 15.4 trillion at the end of 1997.
Total credits extended by Bapindo amounted to Rp 13.7 trillion
by the end of 1997, while third-party funds mobilized by the bank
were Rp 7.76 trillion. (rid)