BII expects to book 27% lending growth

BII expects to book 27% lending growth

JAKARTA (JP): Bank Internasional Indonesia of the Sinar Mas
Group expects to book a Rp 300 billion (US$127 million) net
profit this year, supported by an estimated 27 percent lending
growth, an executive of the bank, H.S. Anwar, said yesterday.

Anwar also confirmed that Bank Internasional Indonesia (BII)
will set up a joint venture with the Commonwealth Bank of
Australia this year, each of which will hold an equal stake, with
a planned capital of Rp 150 billion.

BII's president Indra Widjaja told the bank's shareholders
yesterday that as of the end of 1995, BII's net loans stood at Rp
8.2 trillion, indicating a 20 percent increase over the previous
year, while total deposits rose 37 percent to Rp 8.4 trillion.

"Last year's lending growth rate was much lower than the 45
percent growth in 1994. The decline, however, was justified by
the need to curb credit growth as called for by the central bank,
Bank Indonesia," Widjaja said.

"The aggregate credit growth nationwide in 1995 was
approximately 23 percent, therefore our 20 percent growth was not
entirely off the mark," he added.

Widjaja said that in 1995 the bank allocated up to 35 percent
of its lendings to the services sector, 22 percent to the
manufacturing sector, 17 percent to the trade sector, 12 percent
to the construction sector, 3 percent to the agricultural sector
and the remaining 11 percent to other sectors such as mining,
forestry and agroindustry.

Commenting on earnings performance, Widjaja said that lending
activities remained the primary source of revenue, contributing
approximately 90 percent to the bank's total revenue.

He said that net interest revenue last year increased by 38
percent to Rp 493 billion over the previous year, while fee-based
revenue rose 98 percent to Rp 168 billion.

He said that BII's net profit rose 38 percent to Rp 192
billion last year despite the 71 percent increase in operating
expenses.

For the first quarter of this year, BII booked a net profit of
Rp 71 billion, as compared to Rp 63 billion in the same period of
last year. Its interest revenue rose from Rp 336 billion in the
first quarter of last year to Rp 475 billion in the January to
March period of this year.

Anwar also said that the shareholders yesterday approved
several proposals, including the distribution of final dividends
of Rp 60 per share, stock dividends and bonus shares.

He said the bank will issue eight new shares for every 10 old
shares and one dividend share for every nine old shares.

Meanwhile, BII's holding company, PT Sinar Mas Multiartha,
announced yesterday that it has shareholders' approval for the
distribution of final dividends of Rp 56 per share and bonus
shares.

Multiartha said it will distribute three new shares for every
10 old shares by capitalizing the capital gains accrued from its
initial public offering last year.

Multiartha's net profit reached Rp 142 billion last year, much
higher than 1994's figure of Rp only Rp 20 billion.

Its net earning per share rose by 85 percent from Rp 160 in
1994 to Rp 296 last year. (alo)