PT Bank Internasional Indonesia Tbk (BII) had writte off IDR539 billion NPL from five debtors with their credits worth US$112 million.
The write off was done last year and early this year. The mounting NPL made the slashing performance in 2009 as it should provide larger provision.
Last year the write off was for one debtor and the other four in early this year. But provision was done last year so that it is not included in the finance statement of quarter I/2010.
Last year the write off was for one debtor and the other four in early this year. But provision was done last year so that it is not included in the finance statement of quarter I/2010.
Last year BII adjusted the provision balance for the disbursed credits for December 31, 2008 finance year as it was reported by the bank for June 30 and September 30, 2009.
The adjustment was due to the material information affecting the credit of six debtors as a result of the already-happened facts and condition ended on December 31, 2008.
Bank adjustment was based on the PSAK 55/2005. As a result of the provision, BII recorded IDR41 billion losses in December 2009.
Those five debtors were of the petrochemical, manufacturers, shipping, plantation, and telecommunication.
With the regulation stipulated by PSAK 55, it is very hard for bank to ensure the provision coverage as the NPL calculation scheme is different from the previous one.
The company booked IDR208 billion net profits in quarter I/2010 or 50 folds increase from IDR4 billion in previous year.
The adjustment was due to the material information affecting the credit of six debtors as a result of the already-happened facts and condition ended on December 31, 2008.
Bank adjustment was based on the PSAK 55/2005. As a result of the provision, BII recorded IDR41 billion losses in December 2009.
Those five debtors were of the petrochemical, manufacturers, shipping, plantation, and telecommunication.
With the regulation stipulated by PSAK 55, it is very hard for bank to ensure the provision coverage as the NPL calculation scheme is different from the previous one.
The company booked IDR208 billion net profits in quarter I/2010 or 50 folds increase from IDR4 billion in previous year.
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