INDONESIA - BANKING - Bank Syariah Mega posts lower asset, due to productivity strategy

JAKARTA: PT Bank Syariah Mega Indonesia reported asset of IDR4.4 trillion as of August 2011, year-to-date lower than earlier asset at the end of 2010 worth IDR4.6 trillion.

 

The Para group's lender was unable to boost performance during July and August, for it already reported lower asset in June at IDR4.48 trillion. (source)

 

President Director of Bank Syariah Mega Indonesia (Bank Mega Syariah) Beny Witjaksono said the asset decrease was mainly caused by management's strategy to lessen expensive third-party funds, especially deposits.

 

"We press our third-party fund [DPK] for better productivity," he said today.

 

Therefore, he added, low cost funds such as savings and checking account (giro) contributed 32% of total third party funding, bigger than the December 2010 portion of 20%.

 

The third party fund decline also led to rising finance to deposit ratio (FDR) to 87%-89%, compared to the end of 2010 at 80%.

 

Beny optimistic to book positive asset growth at the end of 2011 as public funds will go back to Bank Syariah Mega. "This deposits decline used to happen in the middle of the year. It will rise again in the end of the year," he said. (20/t03/ags)

 

Source : http://en.bisnis.com/articles/bank-syariah-mega-posts-lower-asset-due-to-productivity-strategy  - Sept 22, 2011