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From Century to Mutiara, now it's Bank J Trust Indonesia
More capital, new name: PT Bank Mutiara president director Ahmad Fajar (third right) with directors Felix I
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span class="caption">More capital, new name: PT Bank Mutiara president director Ahmad Fajar (third right) with directors Felix I. Hartadi (left), Laksmi Mustikaningrat (second left) and Eihito Tamura (right), as well as vice president commissioner Sigid Moerkardjono (third left), talk with J Trust Asia CEO Shigeyoshi Asano after an extraordinary shareholders meeting in Jakarta on Monday. J Trust Co. Ltd., as the majority owner of Bank Mutiara, has agreed to add capital of Rp 300 billion to support the company's business expansion and to change its name from PT Bank Mutiara to PT Bank J Trust Indonesia. Antara/Audy Alwi
A Bank Mutiara extraordinary shareholders meeting agreed on Monday to rename the private lender Bank J Trust Indonesia, following the lender's acquisition by Japanese finance company J Trust last year.
The rebranding is part of Bank Mutiara's transformation, which includes a change in logo and internal improvements.
The shareholders meeting also saw the appointment of several new directors and commissioners, pending approval from the Financial Services Authority (OJK).
'The change in name and logo reflects that the majority of shares are owned by J Trust Co. Ltd. It will also accelerate the integration of corporate culture in the bank,' Bank Mutiara president director Ahmad Fajar told reporters after the meeting.
Fajar said the transformation was part of J Trust's efforts to make its brand uniform across Asia as well as help Bank Mutiara gain more confidence from the domestic market.
Once the bank gets approval from the OJK and Law and Human Rights Ministry, it expects to launch its new name and logo in June.
'We are currently doing internal preparations for all of our branches regarding this transformation. We should be capable of growing more under a multinational shareholder,' Fajar said.
On Nov. 20 last year, J Trust officially took over 99 percent ownership of Bank Mutiara, formerly called Bank Century, from Indonesia's Deposit Insurance Corporation (LPS) at an extraordinary shareholders meeting.
On the occasion, the LPS ' as the majority shareholder of Mutiara ' approved J Trust's acquisition of the bank, which was worth Rp 4.41 trillion (US$337 million) and was 3.5 times Mutiara's price-to-book value (PBV).
J Trust was announced as the final bidder in the auction of Bank Mutiara, which in 2008 as Bank Century was bailed out by the government in a controversial policy.
J Trust was also approved as Mutiara's new owner partly because of its commitment to resolving the bank's high non-performing loans (NPLs), which stood at 12.24 percent gross and 5.45 percent net, due to a legacy of mismanagement before being bailed out.
In order to reduce its NPLs, Fajar said J Trust planned to establish a local asset management firm that would act as a subsidiary to take over most of Mutiara's written-off loans.
Mutiara's would-be sister company will help the bank focus on its transformation as it aims to start making a profit this year, Fajar said, following its net loss of Rp 223.79 billion as of September last year.
Fajar said the bank's shareholders had also agreed at Monday's meeting to provide additional capital of Rp 300 billion, which is the second phase to complete the full acquisition as J Trust injected the same amount in November last year.
Fajar said the Rp 600 billion capital injection had brought the bank's total capital to Rp 1.43 trillion, with 99.07 percent of its shares controlled by J Trust.
According to Fajar, the capital injection could push the bank's loan capacity up to Rp 3 trillion as its capital adequacy ratio (CAR) would reach 17.7 percent. This year, Mutiara expects to increase its loans by 19 to 20 percent.
'We will shift more of our previous corporate lending to commercial, consumer and micro and small and medium enterprises [MSME], which mostly work in the trading sector,' Fajar said.
Mutiara data shows that its outstanding loans stood at Rp 7.81 trillion as of September. Less than 10 percent of the figure channeled to the MSME segment.
