PSM profit soars in first half

PSM profit soars in first half

JAKARTA (JP): PSP group finance company PT Putra Surya
Multidana (PSM), reported a 435 percent net profit increase in
the first half this year to Rp 101.07 billion from Rp 18.87
billion in the first half of 1996.

Rudy Soraya, corporate secretary of publicly listed PSM, said
net profit in the first half this year was about 44.5 percent of
the projected Rp 227 billion profit for 1997.

He said PSM provided loans of Rp 1.80 trillion during this
year's first semester, or 49.4 percent of the Rp 3.65 trillion
initial projection for 1997.

"The gross lending-out was a 236.95 percent rise over Rp
536.23 billion in last year's first semester," he said.

Rudy attributed the drastic growth in the company's profit to
strong retail financing during the first half.

The company provides loan facilities for the retail purchase
of motorcycles and light commercial vehicles.

"Our business, unlike corporate financing, is directly
affected by the economic growth of the country," he said.

"The rise in the country's economy in the past few years has
made motorcycle sales rise," he said.

He said the company expected motorcycle sales to increase 46
percent this year to 1.9 million motorcycles.

He said he foresaw bright prospects due to the low ownership
rate of motorcycles in the country, which was 4.9 per 100 people
compared to 15.2 per 100 people in Thailand and 40.1 per 100
people in Taiwan.

The expected sharp increase in sales would be helped by the
opening of new branches, he said.

PSM has 78 offices -- 36 branches and 42 collection centers.
It expects to have 99 offices in Java and Bali by the end of the
year.

Rudy said the company estimated its low bad debts would be
about 0.52 percent this year.

It's client target is 600,000 clients by the end of this year,
he said.

PSM sold 19.68 percent of its shares to the public last April.
Rudy said the company's market capitalization up until June 30
was Rp 5.43 trillion. (das)