DBS posts 103% profit increase in Indonesia

PT Bank DBS Indonesia, a subsidiary of The Development Bank of Singapore (DBS), booked net profit of Rp114 billion last year, jumped 103% from Rp56 billion it booked in 2004.

According to its financial report published this morning, DBS Indonesia also recorded almost 100% growth in total assets from Rp5.23 trillion to Rp10.67 trillion, surprisingly due to massive growth of rupiah denominated deposits. The bank's rupiah and foreign currency loans also increased significantly last year.

DBS owns 99% shares in Bank DBS Indonesia, while the remaining shares owned by businessmen Edwin Soeryadjaya and Sandiaga Uno.

Temasek Holdings is listed among the ultimate shareholders of the bank. Temasek is also the ultimate shareholder of Bank Danamon and Bank Internasional Indonesia (BII). Temasek controls Danamon through Asia Financial (Indonesia) Pte Ltd (69.6%), and BII through Sorak Financial Holdings Pte Ltd (56.78%).

Danamon booked net profit of Rp2 trillion last year with total assets of Rp66.76 trillion, while BII's profit was Rp725 billion with total assets of Rp47 trillion.

Indonesia's central bank would issue new regulation on single presence in which one ultimate shareholder won't be allowed to own shares in two or more banks. This prompted speculation of merger between DBS, Danamon, and BII which would create a bank with combined asset of Rp123 trillion or around US$14 billion.

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