Mandiri's asset revaluation approved

Sari P. Setiogi, The Jakarta Post, Jakarta

Bank Mandiri said that its shareholders had approved a proposal to revalue the publicly listed bank's assets in a move to eliminate retained losses with paid in capital.

The approval for the asset revaluation, based on the bank's consolidated financial statement of April 30, 2003, was given at an extraordinary shareholders meeting on Thursday.

"The completion of the quasi-reorganization (asset revaluation) will enable the bank to pay dividends to shareholders in line with the board of directors' stated intention of maintaining a 50 percent dividend payout for 2003," said Mandiri president E.C.W. Neloe.

The state-owned bank plans to declare an interim dividend when it announces third quarter results next month.

Neloe added that the asset revaluation would have no effect on shareholder equity which stood at Rp 17.3 trillion (US$1.9 billion) as of April 30, 2003.

He did not provide details.

Mandiri is the country's largest bank in terms of assets, loans and deposits. The bank reported a profit after taxes of Rp 2.24 trillion for the first six months of this year, a 26 percent increase from the same period last year.

Neloe said that he was optimistic that after-tax profit could reach Rp 4 trillion by the end of the year.