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Tahir to inject Rp 2t into Bank Mayapada in Q2
Businessman Dato Sri Tahir has chosen to strengthen his own bank, Bank Mayapada International, after he canceled a plan to acquire Permata Bank, which was backed by Astra International and Standard Chartered
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usinessman Dato Sri Tahir has chosen to strengthen his own bank, Bank Mayapada International, after he canceled a plan to acquire Permata Bank, which was backed by Astra International and Standard Chartered.
“We will add Rp 2 trillion [US$140 million] to Bank Mayapada to strengthen its capital,” he told The Jakarta Post on Sunday.
Tahir, who is an active philanthropist, previously wanted to acquire Permata Bank and merge it with Bank Mayapada in January 2017.
At that time, Permata Bank was in financial trouble due to increasing bad loans.
However, in March 2017, both Astra International and Standard Chartered pledged their commitment to increase Permata Bank’s capital. The decision automatically canceled Tahir plan.
The billionaire said the capital injection of Bank Mayapada would use the right issue mechanism in which the bank would issue new shares and he would act as standby buyer.
“Hopefully we can do the right issue in the second quarter,” he added.
Currently, Tahir through PT Mayapada Karunia Corporation holds 26.42 percent of Bank Mayapada’s shares.
Other shareholders are Cathay Life Insurance Co. Ltd. with 40 percent, Galasco Investment Ltd. with 10 percent, Unity Rise Ltd. with 7.31 percent and the public with a 16.27 percent share.
Tahir is also the president commissioner of Bank Mayapada.
The capital injection will increase Bank Mayapada’s equity level to around Rp 9 trillion.
According to the latest financial data in the third quarter of 2017, Bank Mayapada had total equity of Rp 7.69 trillion.
Out of the Rp 7.69 trillion equity, the bank has a common equity tier 1 or core capital of Rp 6.35 trillion which makes the lender a medium-sized bank or bank in BUKU III — a bank with core capital between Rp 5 trillion and Rp 30 trillion.
As of Sept. 2017, the bank had capital adequacy ratio (CAR) of 12.55 percent, Tahir said. The capital injection would make the CAR increase to around 16 to 17 percent.
When asked if Bank Mayapada would take over another bank to expand the business, Tahir said currently there was no plan for an acquisition so far.
“No acquisition for now,” he told the Post.
The bank’s financial condition was positive in the third quarter of 2017 as net income increased by 8.41 percent to Rp 817.42 billion compared to Rp 753.99 billion in the same period last year.
Tahir said he still had 2 percent of Permata Bank public shares, but despite the cancelation of the acquisition he had no plan to sell it for now.
“I have no plan to sell it, maybe I will maintain it for now,” he added.
Permata Bank itself has been back on track after some restructuring and changes in management.
As of Sept. 2017, the bank recorded a net income of Rp 700.05 billion compared to Rp 1.24 trillion net loss in the same period last year despite the non-performing loan still being high at 4.7 percent, close to the 5 percent danger zone.
Last month, Permata Bank finance director Lea Setianti Kusumawijaya said the bank was targeting double digit net income increases in 2018, adding that the increase would come from an expansion in both the retail and corporate segments with increasing capability in digital banking.
She added that as of Nov. 2017, the bank’s loan disbursement grew negatively by 16 percent year-on-year (yoy) to Rp 81.3 trillion, but as operating expenses decreased by 50 percent yoy to Rp 4.1 trillion Permata had been able to record a net income of Rp 735 billion.
