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
;Agencies; 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; ANPAf..r.. 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; ANPAf..r.. 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
;Agencies; ANPAf..r.. 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