BII pays 30 percent profit for dividend

The Jakarta Post, Jakarta

Publicly listed Bank Internasional Indonesia, the country's sixth largest lender by assets, announced at its shareholders' meeting on Tuesday that it would set aside 30 percent of its 2004 profit as a dividend.

The bank booked a profit of Rp 822 billion last year, which means the holders of its 47,783,346,231 shares would receive a total of Rp 246.5 billion, or Rp 5.15 per share.

In addition to announcing the dividend payment, BII, partly owned by South Korea's largest lender, Kookmin Bank, and Singapore's Temasek, said that the shareholders had agreed to the planned acquisition of motorcycle financing firm PT Wahana Ottomitra Multiartha (WOM).

However, the plan to acquire a maximum 75 percent stake in WOM is still on hold pending an upcoming bond sale needed to maintain the bank's capital reserve.

"We still have to wait for approval from the central bank on the issuance of US$150 million to $200 million of subordinated bonds," BII president director Henry Ho said.

BII deputy president director Armand B. Arief said the bank's sub-debt issuance had to meet the central bank's capital requirements before BII could move forward with the acquisition of WOM.

"We have actually prepared funds for the acquisition of WOM," he said.

The Jakarta-based lender hopes to issue the bonds sometime in the second quarter of 2005.

BII also plans to expand its loan portfolio by at least 25 percent this year from Rp 13.2 trillion last year, with consumer lending its priority. (003)