Lippo Bank's profit up 44% in 1st quarter

JAKARTA (JP): The Lippo Group's Lippo Bank posted a 44 percent increase in net profit to Rp 39.6 billion (US$16.50 million) for the first quarter, up from Rp 27.46 billion in the corresponding period last year.

The bank stated that its pretax profits had risen 46.4 percent to Rp 56.6 billion in the Jan.-March period from Rp 38.6 billion in the same period last year.

Operating income surged 51 percent to Rp 60.8 billion from Rp 40.20 billion.

Its total assets were worth Rp 10.7 trillion (US$4.45 billion) on March 31, up 42.9 percent on Rp 7.5 trillion a year earlier.

The bank said its loan portfolio had risen from Rp 6 trillion to Rp 7.6 trillion.

Mobilized funds were worth Rp 9.2 trillion in the first quarter, compared to Rp 6.6 trillion in the first quarter of 1996.

The bank's president, Markus Permadi, said that prudent asset and liability management and a tight reign on expenses had helped the bank gain the strong results.

"The strategies of conservative asset management and aggressive funds mobilization have served Bank Lippo well," he said.

Lippo Bank, established in 1948, is one of the country's oldest large, commercial banks. It has 307 branches in 104 cities throughout the country.

The bank has a wide range of retail, commercial, consumer, international and investment banking products.

The bank in involved in domestic joint venture banks and financial institutions with foreign partners, including Banque National de Paris, Tokai Bank, Daiwa Bank, Bankers Trust and GMAC Finance.

Lippo Bank wholly owns merchant banks in Sydney, Bangkok, Kuala Lumpur, Hanoi and Ho Chi Minh City. (09)