BTN EXPECTS TO MAKE RP1.4 TRILLION PROFIT IN 2012

Jakarta, Sept 18 (ANTARA) - PT Bank Tabungan Negara's (BTN) net profit is expected to reach Rp1.4 trillion in 2012 if its plan to sell 30 percent of its shares through an initial public offering could be realized before the end of this year.
State minister for state-owned firms Sofyan Djalil and finance minister Sri Mulyani Indrawati made the statement at a meteing with with House Commission XI here on Thursday.
The bank has planned to carry out an initial public offering in the fourth quarter of this year and preprations for it have already reached the final stage as it has already appointed the underwriter, financial advisors, appraisal agency, lawyers and public relations officers for it.
Until now however no clear signs have been seen with regard to when it would really be implemented because no official approval from the House of Representatives has been received while market condition is still not yet favourable for conducting a listing at the Jakarta Stock Exchange.
According to the results of study by BTN IPO advisors the proceeds to be obtained from selling 30 percent of the bank's shares will reach around Rp2 trillion.
The funds will be used for infrastructural and technological development and the development of BTN networks.
"Besides that they will also be used to strengthen the company's capital in the framework of credit expansion for helping the 'One Million Houses' national housing and low-cost apartment development program," the company's president director Iqbal Lantanro said.
He expected the company's earnings to rise to Rp36 trillion in 2012, if the IPO was realized, from this year's projection of Rp22.9 trillion.
At the same time he said its loan to deposit ratio would also increase to 144.94 percent from 105.5 percent before.
Iqbal said the BTN, as a bank with a core business of financing housing projects, needs a strong capital and funding base to assure continuation of supply of funds for housing development