BNI Q1 net profit soars slightly

BNI Q1 net profit soars slightly

JAKARTA: PT. Bank Negara Indonesia's (BNI) net profit for the
first three months of this year rose slightly to Rp 850 billion
(US$96.5 million) from Rp 842 billion in the same period last
year, Chief Executive Saifuddien Hasan said on Tuesday.

The bank's loan-to-deposit ratio stood at 40 percent in the
first quarter, Saifuddien said.

BNI, the second largest state-owned bank in terms of assets,
channeled Rp 3.4 trillion worth of loans in the three months, and
targets extending loans worth Rp 9 trillion in the full year, he
said.

Saifuddien didn't provide other details, such as the bank's
interest income, for the period.

BNI is expected to report first-quarter earnings late this
month or early May.

It plans to issue Rp 1 trillion in seven-year senior debt in
June to strengthen its working capital, Saifuddien said.

The bank has named Deutsche Securities, PT Trimegah Securities
and PT BNI Securities as underwriters for the debt issue, he
added. -- Dow Jones

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ANPAf..r..
CorporateBrief-Panin-issue-bonds
Panin Bank to issue Rp 650b in bonds
JP/14/brief

Panin Bank to issue Rp 650b in bonds

JAKARTA: PT Bank Pan Indonesia, or Panin Bank, officially
announced Tuesday that it will issue up to Rp 650 billion
(US$73.8 million) in subordinated bonds in June to diversify the
maturity profile of its debt.

The amount is higher than the Rp 500 billion indicated by an
official at the bank.

The bond will have a 10-year maturity callable after five
years, the bank said in a prospectus published in a local
newspaper on Tuesday.

Panin says it will guarantee the subdebt, which is junior in
claim on the company's assets, with all of its current and future
assets.

Dealers said Panin's bond is the first local subdebt issue
that's guaranteed by assets, which is likely aimed at attracting
investors' interest.

Panin hasn't decided the coupon rate for the bond, which it
will sell at 100 percent of par. The bank has named Triple-A
Securities as the lead underwriter for the issue. -- Dow Jones

;Agencies;
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CorporateBrief-Cathay-schedules-cut
Cathay to cut its schedules by 45%
JP/14/brief

Cathay to cut its schedules by 45%

HONG KONG: Hong Kong's largest carrier, Cathay Pacific Airways
Ltd. said on Tuesday it will cut 45 percent of its normal weekly
schedule, the fourth round of cuts to its passenger services in
response to the SARS outbreak and the Iraq war.

Cathay said that in all, 23 destinations would be affected and
218 weekly services cut - or 45 percent of the airline's normal
weekly schedule - under the latest cuts.

The majority of service cuts will hit regional routes, while
services to long-haul destinations in Australia, Europe and North
America have also been affected, it said in a statement.

"Unfortunately, demand has continued to drop, mainly due to
the impact of the atypical pneumonia outbreak, and we have had to
make further cutbacks to our services," said Director of
Corporate Planning Augustus Tang.

"We will continue to review the situation and make schedule
adjustments as and when necessary." -- Dow Jones

;Agencies;
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CorporateBrief-Seibu-jobs-cut
Seibu to cut 250 jobs
JP/14/brief

Seibu to cut 250 jobs

TOKYO: Troubled Japanese retailer Seibu will cut 250 jobs at
four stores that are headed for closure in the next few months as
it struggles to boost profitability amid an industry-wide slump,
reports said Tuesday.

Some seven percent of Seibu Department Stores Ltd.'s 3,400
full-time staff will be affected by the decision, which is an
unusual one for Japan's retail sector where payroll cuts are
typically made through early retirement, the Nihon Keizai
newspaper and Kyodo News said.

Seibu believes slashing labor costs is essential to
restructuring operations, the reports said, citing company
sources.

The four shop closures are part of a restructuring plan
approved by Seibu's board in late March. The company aims to shut
down seven of its 24 branches and slash 3,725 jobs to reduce its
total workforce of full-time and part-time employees to 5,698 by
2008. -- AFP

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CorporateBrief-Honda-new-president
Honda names Fukui as new president
JP/14/brief

Honda names Fukui as new president

TOKYO: Japan's number two automaker Honda said Tuesday it will
appoint senior managing executive director Takeo Fukui as
president to replace Hiroyuki Yoshino.

The 58-year-old pledged to spend the next year mapping out
Honda's next business plan due to start in the year to March
2006.

"In the new medium-term management plan I would like to
nurture our global hubs and increase technologies in various
areas and improve our quality and improve the motivation of our
employees," he said.

"Our domestic car sales face difficulty... but worldwide we
can achieve the targets," he said, referring to the current
three-year plan to March 2005.

Honda earlier said it plans to increase auto sales to 3.4
million vehicles by the year to March 2005, up 700,000 from the
year to March 2002, and motorcycle sales to 11 million units, a
rise of five million. -- AFP