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Bank Mayapada seeks to augment consumer banking
Planning the future: Private lender Bank Mayapada Internasional director Hariati Tupang (left to right), commissioner Kumhal Djamil, president director Hariyono Tjahjadijadi, commissioner Insmerda Lebang and director Rudy Mulyono talk during a general shareholders meeting on Wednesday in Jakarta
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span class="inline inline-center">Planning the future: Private lender Bank Mayapada Internasional director Hariati Tupang (left to right), commissioner Kumhal Djamil, president director Hariyono Tjahjadijadi, commissioner Insmerda Lebang and director Rudy Mulyono talk during a general shareholders meeting on Wednesday in Jakarta. The bank posted a net profit of Rp 820.2 billion (US$61.68 million) in 2016.(JP/Wendra Ajistyatama)
Publicly listed private lender Bank Mayapada expects to strengthen its consumer segment by working on new consumer banking products, hoping to provide a complete financial service for its customers.
Bank Mayapada has been known to have a strong footing in the retail, commercial and corporate segments. Now the bank, owned by tycoon Dato’ Sri Tahir, is waiting for Financial Services Authority (OJK) approval for its credit card product.
“The process is quite long but we have completed all the documentation and now are waiting for the final process of the permit issuance,” Bank Mayapada president director Hariyono Tjahjarijadi told journalists after holding an annual shareholders meeting in Jakarta on Wednesday.
After the issuance of the new credit card product, he continued, the bank would look to issue mortgage loans. Hariyono believes the latter could be launched in the second half of this year.
The lender expects to secure OJK approval for the credit card in the third or fourth quarter of the year, followed by its mortgage product, which is undergoing an assessment process at the same time. Therefore, it prefers to maintain a moderate view on the impact of the new products this year.
“The contribution of the credit card to our consumer segment will not be very significant, as it’s already May while the OJK approval will probably be issued in the third or fourth quarter,” Mayapada director Hariati Tupang said.
The bank sees growing potential in the consumer segment as the property industry starts to get back on its feet and the economy, which now relies on consumer spending amid slow investment, starts improving.
Bank Indonesia (BI) data confirm that housing loans expanded by 7.95 percent year-on-year (yoy) as of March versus 6.21 percent recorded in the same period last year.
The National Banks Association (Perbanas) expects the property sector to grow by between 12 percent and 15 percent this year, supported by the tax amnesty program, the central bank’s measure to relax loan-to-value (LTV) ratios and the government’s economic policy packages, which have accelerated property permit procedures.
In general, Bank Mayapada expects to see a 17 percent yoy increase by the end of this year in its loan disbursement, while third party funds (DPK) are expected to grow by 19.6 percent.
It recorded 37.8 percent loan growth to Rp 47.19 trillion (US$3.5 billion) last year, while its public funds collection reached Rp 51.64 trillion, up by 25.3 percent yoy. As of March, its loans had soared 33 percent yoy and the DPK had swollen by 26 percent.
“We set the loan growth target at 17 percent this year because the management believes it is the moderate figure considering the economic growth, which is expected to reach 5 percent to 5.2 percent this year,” Hariyono said.
