Lippobank reports 32% increase in profit
Lippobank reports 32% increase in profit
JAKARTA (JP): PT Lippobank, affiliated with the Lippo Group, yesterday announced a 32.3 percent increase in its after-tax profit to Rp 42.43 billion (US$19.72 million) last year from the previous year.
"Our before-tax profit also showed a significant climb to Rp 66.04 billion from Rp 48.94 billion," Lippobank's vice president Eddy Handoko told reporters after an extraordinary meeting of the company's shareholders here yesterday.
"We expect that our profit will grow by over 25 percent this year due to the improved business climate," he said.
He pointed out that the increase in profits was partly caused by a sharp jump in the bank's fee-based revenues by 63.5 percent to Rp 37.27 billion.
"We are optimistic that the fee-based revenues will grow by about 30 percent this year," he added.
Handoko said the bank's net interest revenues increased to Rp 261.7 billion last year from Rp 218.26 billion in 1992.
He said the ratio of the bank's return on equity improved to 17.49 percent last year from 16.62 percent in 1992, while that of return on assets rose to 0.99 percent from 0.93 percent.
Overseas offices
Lippobank, which has a subsidiary in Australia and branch offices in Sydney, Bangkok, Kuala Lumpur, Hanoi and Ho Chi Minh City, reported that its total assets last year surged by 28 percent to Rp 4.90 trillion from the previous year.
He also said that its loan-to-deposit ratio (LDR) stood at 83.6 percent last year, far higher than the 69.2 percent of a year earlier.
"We consider last year's LDR as conservative due to our strong loan portfolio," he said.
"Of our Rp 3.38 trillion loan portfolio, 60 percent was channeled for retail trading activities, 20 percent for consumer loans and the remaining 20 percent for middle-class business activities," he said.
According to Handoko, shareholders at yesterday's meeting also approved management's proposal to pay a cash dividend of Rp 60 per share on July 9 and to give bonus shares in November.
For the bonus share scheme, every two existing shares will be entitled to receive one bonus share, he said.
The bonus shares would be issued from the capitalization of Lippobank's agio or the capital gain collected during its public offering in November 1989. The conversion of the agio into its paid-up capital will automatically dilute share prices.
Handoko also said that yesterday's meeting also approved the bank's plan to move its operational headquarters to the Lippo Village in Karawaci.
"We will soon report the move to Bank Indonesia, the central bank," he added.
He pointed out that the new 20-story headquarters, called the Asia Tower, will cost the company around $13 million.
"It will be operational in September or December this year," he added. (fhp)