Mortgage lenders hoping for Indonesian property boom in 2011
Indonesia’s banks are salivating at the prospect of a overseas-led property boom as restrictions on foreign ownership are hopefully relaxed next year. Some are estimating inflows of US$3 to 6 billion in property investment should parliament vote in favor.
In this article, Bank Tabungan Negara (BTN) CEO Iqbal Latanro sees a chance for Indonesian banks to begin a rapid expansion, as property prices in the cities increase and the economy grows to allow more people to access loans. BTN is the smallest of four state-owned banks but is the country’s largest mortgage provider. To back up that confidence, It is planning to open 200 new branches next year and is looking to raise Rp2 trillion (US$222 million) through bonds and Rp1 trillion by asset securitization.
BTN’s expects to make a Rp790 billion ($87.5 million) in 2010 — a big jump from its Rp490.45 billion ($54 million) in 2009. Should things continue to go well, Latanro projects profits will rise another 50% to Rp1.2 trillion. The bank has raised Rp1.9 trillion since going public a year ago, and shares have risen 94% since then.
source & article: Reuters via The Jakarta Globe
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