NISP aims for 25% credit expansion

NISP aims for 25% credit expansion

JAKARTA (JP): Publicly-listed Bank NISP announced yesterday that it will expand its credit distribution by 25 percent this year, supported by an increase of 30 percent in funds generated from public savings and offshore loans.

A bank director, Pramukti Surjaudaja, said in a statement that as of the end of last year, total funds generated from the public increased by 28 percent to Rp 500 billion (US$213 million) over the previous year, while its loans grew by 28 percent to Rp 709 billion.

"With a capital adequacy ratio of 13.7 percent, we are optimistic that we will perform strongly this year," Pramukti said.

He added that most of the bank's loans will go to the trade, manufacturing and services sectors.

The statement also said that, during an annual shareholders meeting held in Bandung, West Java, yesterday, the shareholders endorsed the management's proposal to pay dividends of Rp 6.1 billion or Rp 100 per share.

He said the dividends represent 36.4 percent of the bank's net profits of Rp 17 billion last year.

"The dividend payout ratio is beyond our promise as stated in the prospectus prepared for the bank's initial public offering in 1994. We did it to satisfy our shareholders," Pramukti added.

In the prospectus the bank promised to pay out dividends of up to 30 percent of its net profits if they exceeded Rp 30 billion.

Last year Bank NISP registered a 36 percent increase in its interest revenues to Rp 53 billion from Rp 38 billion in 1994.

Total assets also rose 33 percent to Rp 875 billion as of last December from Rp 655 billion at the end of 1994. The bank expects another 25 percent increase in its assets this year.

The bank's loan-to-deposit ratio last year was 87.5 percent, while its rate of return on assets reached 2.68 percent and the rate of return on equity was 20.2 percent.

Bank NISP, with its headquarters in Bandung, West Java, has 40 branch offices in Java and Batam. (alo)