BUN to open 40 new branches this year

JAKARTA (JP): Publicly listed Bank Umum Nasional (BUN) will open 40 new branches this year to strengthen its retail services.

BUN president Leonard Tanubrata said yesterday most of the branches would be in Java.

He said BUN now had 113 branches and operated 1,500 Automatic Teller Machines and phone banking facilities.

Leonard estimated the bank's lending growth would reach between 17 and 20 percent this year, an increase of about Rp 1.1 trillion (US$457.76 million).

"The bank's deposits are projected to grow by about 16 percent," he said.

BUN's asset rose to Rp 6.7 trillion last year from Rp 5.9 trillion in 1995.

He said BUN would also improve its efficiency by using more advanced technology.

"We are launching a new computerized system called the Bank Transformation System and hope to lower our operating expense over revenue to 50 percent from about 60 percent now," he said.

BUN's operating expenses in 1995 were Rp 927.3 million and its revenue Rp 998.4.

Leonard was speaking after awarding prizes to winners of the bank's lucky draw competition. He said the lucky draws were a good way to attract customers.

He said the lucky draw program attracted about 17,500 new customers between September and December who deposited Rp 150 million.

In the first round of the lucky draw competition between September and December 1995 BUN collected Rp 200 million from 20,000 new customers. In the second round between February and June last year BUN collected Rp 100 million from 15,000 new accounts, he said.

There was Rp 100 million in cash prizes and first prize was a BMW 318i.

Leonard said BUN would hold one more lucky draw competition. (02)