BII performs well, upbeat about becoming anchor bank
BII performs well, upbeat about becoming anchor bank
The Jakarta Post, Jakarta
As its financial indicators continue to steadily improve, Bank
Internasional Indonesia (BII) is optimistic that it can become
one of the "anchor banks" and play an even bigger role in the
sector's consolidation process.
BII's president director Henry Ho said on Thursday that BII
was performing well and that it had met the criteria set out by
the central bank to be an anchor bank -- which will act as the
main consolidating banks under its Indonesian Banking
Architecture (API) scheme.
"Judging from our first-half financial reports, we surely fit
the set criteria to become an anchor bank," Ho said.
BI launched the API in 2004 in order to further consolidate
and streamline the country's 132 domestic banks. Under the API,
BI expects there will only be five international banks and 10
national banks.
With mergers and acquisitions likely to mushroom in the next
few years, the central bank has also announced its criteria for
the anchor banks.
Ho said BII had met all the criteria.
For example, the nation's sixth largest lender posted in the
first six months of the year a capital adequacy ratio (CAR) of
20.9 percent and a 55 percent rise in lending as compared to the
same period in 2004, far exceeding BI's criteria of 12 percent
and 22 percent respectively, Ho said.
The CAR is a comparison between a bank's capital with its
risk-weighted assets, including loans.
The bank's first semester report showed that total loans stood
at Rp 19 trillion as of June, with Rp 12 trillion loans booked in
the corresponding period last year.
BII financial director Prem Kumar said that the high growth in
lending was in part attributable to the bank's move to acquire PT
Wahana Ottomitra Multiartha, or WOM Finance -- a leading multi-
finance company focusing on motorcycles.
"BII has completed the acquisition of 43 percent of WOM
Finance in May 2005," he said.
The financing company recorded a Rp 130 billion increase in
revenue as of June from the same period in 2004.
In another part of BII's first-half financial reports, it is
stated that the bank had issued 608,517 units of credit cards,
putting the bank in fourth place at 6.5 percent market share
after Citibank, BNI and HSBC. (006)
Anchor Bank Criteria
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Criteria BI BII
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CAR
Loan Growth
Net NPL* < 5% 2,06%
LDR**
ROA***
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Source: BII
* Non-performing loans
** Loan to deposits ratio
*** Return on assets