Mandiri's asset revaluation approved

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.