Panin Bank reports 60% rice in net profit

JAKARTA (JP): Publicly listed Panin Bank posted a 60 percent increase in net profit to Rp 80.2 billion (US$33.69 million) in 1996 from Rp 50.04 billion in 1995.

The bank's senior executive vice president, Roosniati Salihin, said earnings per share rose to Rp 266 in 1996 from Rp 189 in 1995.

"We expect to book earnings per share of Rp 340 and net profit of Rp 100 billion this year," she said after the bank's extraordinary shareholders meeting.

Revenue increased to Rp 776 billion in 1996 from Rp 600.58 billion in 1995.

About 70 percent of bank's revenue came from interest income and the remaining 30 percent from fee-based income.

"Panin Bank arranged financing for infrastructure projects last year," Roosniati said.

She said the bank expected total revenue of Rp 980 billion this year. "We expect an increase of 25 percent from last year's revenue," she said.

Panin Bank, which had total assets of Rp 5.4 trillion as of last December, had lent Rp 3.2 trillion.

She said about 10 percent of the bank's loans went to small retail borrowers and the remaining 90 percent to corporate borrowers.

"In big cities like Jakarta, our main market is corporate borrowers," she said.

Roosniati said Panin bank, which has 20 main branches and 80 sub branches, had total equity of Rp 581 billion consisting of Rp 300 billion paid-up capital and the rest was retained earnings in 1996.

Panin Bank is 21.38 percent owned by Panin Life, 13.69 percent by Panin Insurance, 6.97 percent by Norbax Inc and 57.96 percent by the public.

The bank was established in 1971 through the merger of Bank Industri dan Dagang Indonesia, Bank Kemakmuran and Bank Industri Djaja Indonesia.

Yesterday's meeting also approved the splitting in half of the bank's stock, reducing each shares nominal value from Rp 1,000 to Rp 500.

"The stock split is necessary to make trade in the stock more liquid in the market," Roosniati.

The share split will double the number of shares from 300 million to 600 million. (09)