Bank Mutiara cancel private sub loan IDR1 trilion

PT Bank Mutiara Tbk cancel the plans to issue private sub loan IDR500 billion -IDR1 trillion. The Private sub loan can be included in tier two capital and will increase Mutiara's capital adequacy ratio (CAR). The lender change strategy to expand credit that will alleviate CAR and focusing to segmen with less risk weighted asset (aset tertimbang menurut risiko/aTMR). The lenders focus toe expand loan consumer to maintain CAR. The banks expect to reap IDR180 billion net profit shrinking 61.66% from IDR291 billion in 2011, as the lender can not rely more on recovery asset to raise profit. Bank Mutiara generated almost half of its profit from recovery asset.