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)