Lippobank to raise capital

Lippobank to raise capital

JAKARTA (JP): Publicly-listed Lippobank announced yesterday
that it is increasing its authorized capital by 40 percent to
over Rp 1 trillion (US$443.1 million) to bring its capital
adequacy ratio (CAR) to 12 percent.

The bank said in a statement that the capital increase, which
is to be completed by June, is fully underwritten by W.I. CARR,
the merchant banking arm of France's Indosuez Group.

After the capital increase, the bank's 12 percent CAR will be
well above the 8 percent level required by the central bank, Bank
Indonesia, and the Bank for International Settlement.

Lippobank, listed on the Jakarta and Surabaya Stock Exchanges
with a market capitalization of over Rp 1.3 trillion, is a
private commercial bank with 290 domestic branches and six
international representative offices in Sydney, Kuala Lumpur,
Bangkok, Hanoi and Ho Chi Minh City.

It has also set up six joint ventures in banking and financing
services with National De Paris, Tokai Limited, Daiwa Bank
Limited, Bankers Trust Company and GMAC Finance.

The company's president, Markus Parmadi, said that the
substantial capital increase is part of a strategy to be
aggressive on the capital and liability side of balance sheet but
conservative and prudent on the asset side.

Lippobank also reported a 32.4 percent increase in before-tax
profits to Rp 137.3 billion in 1995 from Rp 103.7 billion in
1994.

The bank's total assets grew by 10.3 percent as of the end of
1995 to Rp 7.6 trillion and its loans increased by 11.7 percent
to Rp 5.8 trillion. (kod)