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Jakarta Post

Bank Mandiri to benefit from sharia bank merger: S&P

  • Riska Rahman

    Jakarta

Jakarta   /   Mon, October 26 2020   /  01:00 am
Banking solutions: State-owned Bank Mandiri helps businesses face the current challenging times through online banking solutions. (Courtesy of Bank Mandiri/.)

State-owned Bank Mandiri is expected to benefit the most from a merger of state-owned Islamic banks, in which it will hold a majority stake, according to international rating agency Standard and Poor's (S&P) Global Ratings. The move will combine Bank Syariah Mandiri (BSM), BNI Syariah (BNIS) and publicly listed BRI Syariah (BRIS) to form the country’s biggest sharia bank. According to the banks’ joint statement on Wednesday, Bank Mandiri will hold the majority 51.2 percent shares of BRIS, the only surviving entity of the merger, considering BSM will contribute over half of the merged entity’s assets. “We expect the merger to be positive for Bank Mandiri’s business profile,” S&P stated in a bulletin note published on Oct. 15. “The effect on the other two banks [BRI and BNI] will be broadly neutral, given the relative...