Tue, 09 Jul 1996

'Infobank' ranks Bank Tiara as most sound bank

JAKARTA (JP): Publicly-listed Bank Tiara was ranked by Infobank magazine as one of the soundest large banks in the country.

Bank DKI and Bank Dharmala took the second and third slots, followed by the branch office of Bank of Tokyo in the fourth, Bank Mashill in the fifth and Bank Bira in the sixth, the monthly announced yesterday.

Bank Panin, Bank Surya and the branch of office of Citibank and Bank Bali were respectively ranked seventh, eighth, ninth and 10th in the category of banks with assets of more than Rp 1 trillion.

State-owned banks received lower rankings. Bank Tabungan Negara came in 19th, Bank Negara Indonesia (BNI) 1946 in 32nd, Bank Rakyat Indonesia in 44th, Bank Bumi Daya in 52nd and Bank Pembangunan Indonesia (Bapindo) in 54th.

Eko Budi Supriyanto, the managing director of the monthly banking magazine said that the rankings were based on the assets, capital and profit margins in the banks' 1994/95 financial reports.

He said that the assessment covered the country's 240 banks -- including joint venture banks and branches of foreign banks, which were divided into three categories.

The first group contained 54 banks with assets of above Rp 1 trillion, the second consisting of 37 banks with assets between Rp 500 billion and Rp 1 trillion and the third was comprised of 149 banks with assets of less than Rp 500 billion.

The magazine based its assessment on the performances of banks' Capital Asset Ratio (CAR), Net Interest Margin (NIM), Return on Asset (ROA), Return on Equity (ROE) and Loan to Deposit Ratio (LDR). It ranked the 10 best listed banks as well, Eko said.

Bank Rama and Daiwa Perdania took the first and second slots on the top-ten list of banks with assets of between Rp 500 billion and Rp 1 trillion.

Bank NISP, United Overseas Bank Bali, Bank Prima Express, Bank Putera Surya Perkassa, Bank Tokai Lippo, Bank Credit Lyonnais Indonesia, LTCB Central Asia and BPD Sumatra Utara took the third to 10th ranks.

Bank MAS, Bank Hanil Tamara and BPD Kaltim won the first, second and third slots of the 10 best banks with assets less than Rp 500 billion.

Bank Liman International, Bank Hokindo, Bank Jasa Jakarta, Bank Rahardja Makmur, ANZ Panin Bank, the branch office of Bangkok Bank and Bank Bintang Manunggal took fourth to 10th place, respectively.

Bank Tiara took the first slot in the 10 best listed banks, followed by Bank Rama in second, Bank Mashill in third, Bank NISP in fourth and Bank Bira in fifth.

Bank Panin was ranked sixth in the category, while Bank Surya, Bank Bali, Bank Internasional Indonesia and Bank Modern took the seventh to 10th places.

Hartojo Wignjowijoto said that the magazine's 10 top bank rankings were quite fair given the absence of sponsorship in the rating activities.

He said, however, that the ratings, which were based only on written financial reports, did not completely reflect the banks' performances.

"Unwritten reports are often more important than the published data but unfortunately the magazine's survey did not cover such hidden information," he said.

The magazine also reported that 20 banks delayed in submitting their 1995 financial reports to Bank Indonesia, the central bank,

"The delay may have been because those 20 banks were suffering problems," he said. "Some of them have received technical assistance from larger banks."

The 20 banks are Bank Yama, Bank Dewata, Bank Intan, Bank Dwima Sejahtera, Bank Asta, Bank Pelita, Bank Artha Prima, Bank Pacific, Bank Mega, Agrobank, state-owned Bank Bumi Daya, Bank Dana Asia, Bank Umum Majapajit Jaya, BPD Maluku, Bank Pinaesaan, Bank Anrico, Bank Uppindo, state-owned Bapindo, Bank Industri and the Korea Commercial Bank Surya. (hen)