Ometraco posts 40 percent rise in net profit

JAKARTA (JP): Ometraco Corporation's net profits rose by over 40 percent to Rp 53 billion (US$22.5 million) in this year's third quarter up from Rp 36.7 billion for the same period last year.

The business group said the surge in net profit was because of its rapidly expanding multifinance portfolio and Bank Tiara's strong performance.

Pretax income from financial services rose by 158 percent to Rp 58.5 billion for the nine months to September 30 up from Rp 22.6 billion.

Revenues from non-financial services activities rose 24 percent to Rp 877.9 billion from Rp 706.4 billion.

Ometraco which has a 51 percent stake in Japfa Comfeed Indonesia, a 69 percent stake in Multibreeder Adirama Indonesia, a 51 percent stake in Bank Tiara and Trafindo Perkasa and a number of private companies, is controlled by the Sentosa family.

In the financial services division, net income from multifinance company Ometraco Multi Artha jumped over 200 percent to Rp 15 billion. Low cost funding plus rising interest margins led to higher revenues, the group said.

Bank Tiara booked a total operating income of Rp 48.2 billion in this year's third quarter, a 32 percent increase over Rp 34.6 billion for the same period last year.

"To maintain our rapid growth rate, we are focussing on building our non-interest income. As part of this strategy, we have formed a securities joint venture with the Hong Leong Group of Malaysia to penetrate the local securities market," said Bank Tiara president Hendrick Kolonas.

Boyke Gozali, the president of the business group, said in the general insurance area, Ometraco Corporation was finalizing a joint venture agreement with a British company.

"We hope the agreement can be signed during the fourth quarter," he said.

In the consumer division, revenue increased 30 percent to Rp 795.5 billion from Rp 611.2 billion. Japfa Comfeed Indonesia's revenue rose 29 percent to Rp 743.4 billion thanks to a 17 percent increase in sales for day-old chickens (DOCs) and improved layer DOC prices.

In the infrastructure division, revenues reached Rp 302.5 billion, but net profits were hurt by a slowdown in purchases by public utility customers. (jsk)