CCB Indonesia eyes higher capital status
The Jakarta Post
Publicly listed lender China Construction Bank Indonesia (CCB Indonesia) will conduct rights issues periodically in 2017 and 2018 to raise additional capital as an effort to achieve a higher capital status.
The bank hopes to put itself among the lenders with a minimum capital of Rp 5 trillion (US$374.92 million), also known as BUKU III banks. With that status, CCB will be allowed to conduct a wider range of banking activities.
CCB Indonesia director Adri Triwitjahjo told reporters on Tuesday that his bank still needed about Rp 2.5 trillion to achieve the BUKU III category and expected to realize the plan in the next three years.
“We will adjust [the plan] with our business development because we don’t want our CAR [capital adequacy ratio] to be too high. Injection of capital will be in line with our needs,” he said after the bank held its annual general shareholders meeting.
As part of the effort, the shareholders approved the allocation of more than 97 percent of the bank's 2016 net profits as retained profits to strengthen its capital structure. CCB booked Rp 22.18 billion in profits last year, a 67 percent fall year-on-year.
As of December, CCB Indonesia was 60 percent owned by the China Construction Bank Corporation, 25.6 percent by Indonesian businessman Johnny Wiraatmadja, 0.9 percent by PT Blue Cross Indonesia and 13.5 percent by the public. (yon/tas)
- Prosecutors demand 1.5 years for Buddhist woman on ‘azan’ blasphemy charge
- Malaysia to alter 'hideous' tourism logo featuring ape in shades
- Sony's new super-fast cameras are winning over the pros
- Iran unveils next generation missile: Media
- School boy, 14, runs for Vermont governor
- China designs spacecraft to extend lifespan of satellites
- Former S. Korea presidential hopeful acquitted in sex abuse case
- Tourists cause human traffic jam at Mt. Fuji
- Defending territorial integrity over Natuna islands
- Here are 10 of the most populated cities in the world