New blood: Publicly listed PT Bank Mayapada Internasional director Rudy Mulyono (left to right), outgoing second vice president director Vinsensius Chandra Tjen, president director Hariyono Tjahjarijadi, independent commissioner Kumhal Djamil, director Hariati Tupang, first vice president director Jane Dewi Tahir, independent commissioner Insmerda Lebang and director Suwandy stand together for a photo at the lender'€™s extraordinary shareholders meeting in Jakarta on Friday. (JP/Jerry Adiguna)

Publicly listed Bank Mayapada is setting humble targets this year despite the high growth it booked in the previous year.

Bank Mayapada compliance director Rudy Mulyono told the press in South Jakarta on Friday that his firm targeted growth of about 13 percent to 15 percent in loans, third-party funds and profits this year, as stated in the banking business plan (RBB) it submitted to the Financial Services Authority (OJK) last year.

The private lender booked growth of about 30 percent year-on-year (yoy) in outstanding loans as of December last year, Rudy said, citing Bank Mayapada'€™s unaudited financial report. Third-party funds also expanded at the same pace while the lender'€™s net profits soared by about 60 percent last year.

'€œThe realization usually exceeds our targets. However, since banking is a sensitive business, we still put '€˜prudent principles'€™ on top of the targets,'€ Rudy said, adding that the exact amounts would be revealed in a public exposé in the near future as his firm'€™s balance sheets were being audited.

The Bank Mayapada financial report as of September last year showed that the lender disbursed Rp 31.7 trillion (US$2.37 billion) of loans, 21.9 percent higher yoy compared to the same period in 2014. Its third-party funds went up by 21.15 percent to Rp 38.78 trillion while net profits soared by 40.76 percent to Rp 530.5 billion.

Despite booking a loan growth that was higher than the overall industry'€™s, which stood at 10.5 percent last year, Bank Mayapada recorded a low net non-performing loan (NPL) rate of 0.37 percent.

Rudy said the lender applied several anticipatory measures to ensure NPLs were on a controlled level. The measures included stricter loan customer selection and increasing visits to customers'€™ business premises so that the lender could see first-hand their situations.

The director expressed optimism in facing this year'€™s economic situation following measures taken by the government, which he said, was supportive toward businesses.

'€œVarious incentives, lower reserve requirements and the government'€™s front-run projects are positive signs,'€ he said, adding that his firm would continue expansion this year by opening 17 new offices nationwide and conducting a rights issue to add to the company'€™s capital to fulfill the BUKU III requirement, among other things.

The rights issue, planned to be carried out in this year'€™s second half, would add around Rp 1 trillion into the lender'€™s current capital of approximately Rp 3.5 trillion. The remainder of the funds would be sourced from asset revaluation.

BUKU III requires banks to have minimum core capital holdings of Rp 5 trillion.

'€œOur shareholders are aware that banking is a capital intensive business. The rights issue shows their commitment to expand Bank Mayapada'€™s business,'€ he said.

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