BDNI eyes Rp 350b profit this year

JAKARTA (JP): Bank Dagang Nasional Indonesia (BDNI) of the widely diversified Gajah Tunggal group expects an 80 percent net profit increase this year to Rp 350 billion (US$145.83 million), from Rp 190.4 billion in 1996.

The bank's president, Sjamsul Nursalim, said he thought BDNI would meet its profit target given the encouraging trend in its first quarter profit growth.

The bank is listed on Jakarta's and Surabaya's stock exchanges. It booked a Rp 69.1 billion net profit in the first quarter this year, up 128 percent from Rp 39.2 billion in the same period last year.

"Based on our first quarter performance we are sure we can meet the target," Nursalim said after the bank's annual shareholders meeting.

He said interest income was expected to contribute about 70 percent of its total net profit in 1997, and fee-based income about 30 percent.

"I think the composition will be similar to 1996's," he said.

Yesterday's meeting approved the bank's proposal to distribute Rp 140.1 billion in dividends, or Rp 40 a share, he said.

Nursalim said the remaining Rp 75.47 billion would be kept to support the bank's operation.

He said BDNI's total assets rose 33 percent to Rp 16.65 trillion as of last December, from Rp 12.43 trillion in December 1995.

Outstanding loans increased 28 percent to Rp 12.69 trillion as of December, 1996, from Rp 9.91 trillion in December 1995.

Nursalim said that about Rp 6 trillion of the loans were to the trade sector, Rp 1.77 trillion to the agricultural sector, Rp 2.12 trillion to manufacturing, Rp 1.78 trillion to services, Rp 577 billion to construction and Rp 342 billion to other activities.

He said BDNI's deposits reached Rp 11.51 trillion in 1996, up 46 percent from Rp 7.87 trillion in 1995.

BDNI was also considering buying another private bank here to improve its business performance, he said.

He did not say which bank, but indicated it might be Bank Dewa Rutji. BDNI currently owns about 40 percent of Bank Dewa Rutji.

"It is a matter of waiting for the right time," he said.

He said BDNI had set up Bank Indovina in Vietnam in 1993 as part of its expansion plan.

He said Indovina Bank was 50 percent owned by BDNI and 50 percent by the Industrial and Commercial Bank of Vietnam. (09)