Buana eyes 16% rise in profit

JAKARTA (JP): Publicly listed PT Bank Buana Indonesia expects to achieve a net profit of Rp 118.24 billion this year, a 16 percent increase on the Rp 101.52 billion recorded last year.

The bank said in a statement on Friday that total assets were also projected to increase by 12 percent, from Rp 10.6 trillion to 11.95 trillion, with productive assets rising to Rp 10.5 trillion from Rp 9.6 trillion.

The company's total lending is projected to increase to Rp 2.76 trillion, as compared to Rp 1.81 trillion in the previous year, while equity is estimated to reach Rp 830.11 billion against the previous year's Rp 696.27 billion.

The bank also said that its capital adequacy ratio (CAR) -- the ratio between capital and risk-weighted assets -- fell to 24.65 percent last year from 24.41 percent in 1999 and would remain at a safe level.

The central bank requires commercial banks to have a CAR of at least 8 percent by the end of this year.

"We are optimistic that we will achieve the targets. As of March 31, 2001, our total assets reached Rp 11.68 trillion and third party funds reached Rp 10.35 trillion," the bank said in a statement.

Bank Buana's shareholders' meeting on Friday approved cash dividends at Rp 32 a share for the 2000 financial year. The total dividends will account for about 30 percent of the bank's 2000 net earnings. (tnt)