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Panin Dubai Syariah Bank to shift focus to retail segments
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Islamic bankers: Panin Dubai Syariah Bank directors Edi Setijawan (left to right) Doddy Permadi Syarief and Budi Prakoso stand after a press conference in Jakarta on Tuesday. (JP/Anton Hermansyah)
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ublicly listed sharia lender Panin Dubai Syariah Bank is preparing to shift its target market focus from commercial to retail segments by establishing new branches and expanding haj fund management services.
Director Doddy Permadi Syarief said the bank wanted to increase the contribution of the retail sector in loan disbursement to 60 percent in the next three years from the current 40 percent.
"Retail segments offer higher margin than commercial segments but it requires a lot of network, infrastructure and technology. It will take a long time to change," he said during the company's press conference in Jakarta on Tuesday.
He added that the bank had opened six branches in 2016 and would open three more by next year. The bank would also focus on increasing haj savings next year.
"The haj and other retail savings still constitute about 20 percent of our third-party funds. We expect to increase the proportion to 40 percent with the opening of our new branches,” he said.
As of September, the bank's total assets increased 15.47 percent year-on-year (yoy) to Rp 8.16 trillion (US$612.7 million), while total financing increased 6.11 percent yoy to Rp 5.89 trillion. However, its net income dropped 58.52 percent yoy to Rp 17.36 billion, mainly due to the opening of new branches and increasing non-performing financing, Doddy said. (hwa)
