SINGAPORE -
Malaysia's second-biggest bank CIMB BUCM.KL said on Tuesday Indonesia will account for 40 percent of the group's profit by 2015, making it bigger than the contribution from its home operation.
However, the group's CEO Nazir Razak told reporters at the launch of its Singapore retail operations that the lender is not looking for more acquisitions in Indonesia.
Sept 29th From Reuters
Showing posts with label Malaysian Banks. Show all posts
Showing posts with label Malaysian Banks. Show all posts
Wednesday, September 30, 2009
Friday, September 11, 2009
Indonesia's Mandiri to open remittance unit in Malaysia
JAKARTA-
Indonesia's Bank Mandiri (BMRI.JK) will open a new unit in Kuala Lumpur dedicated to collecting remittances from the millions of Indonesians working in Malaysia, a senior executive said late on Thursday.
Thomas Arifin, Director for International Banking, said the new unit would help Mandiri, Indonesia's biggest bank, increase its fee-based income.
"The bank will initially cover millions of Indonesian workers who are working in Malaysia by progressively extending the number of outlets," Arifin said in a text message sent to Investor Daily.
In a press release on Friday, Bank Mandiri said the remittance unit in Malaysia would be set up by Mandiri International Remittance, the lender's subsidiary which is focused on developing remittance services.
Indonesians working abroad, mainly Malaysia, Singapore and the Middle East, sent home about $8.2 billion in remittances in 2008, according to the state agency in charge of migrant workers.
However, remittances are expected to drop as much as 10 percent this year as firms lay off workers because of tougher economic conditions.
Shares in Bank Mandiri were unchanged on Friday, while the broader market .JKSE was up 0.4 percent.
Indonesia's Bank Mandiri (BMRI.JK) will open a new unit in Kuala Lumpur dedicated to collecting remittances from the millions of Indonesians working in Malaysia, a senior executive said late on Thursday.
Thomas Arifin, Director for International Banking, said the new unit would help Mandiri, Indonesia's biggest bank, increase its fee-based income.
"The bank will initially cover millions of Indonesian workers who are working in Malaysia by progressively extending the number of outlets," Arifin said in a text message sent to Investor Daily.
In a press release on Friday, Bank Mandiri said the remittance unit in Malaysia would be set up by Mandiri International Remittance, the lender's subsidiary which is focused on developing remittance services.
Indonesians working abroad, mainly Malaysia, Singapore and the Middle East, sent home about $8.2 billion in remittances in 2008, according to the state agency in charge of migrant workers.
However, remittances are expected to drop as much as 10 percent this year as firms lay off workers because of tougher economic conditions.
Shares in Bank Mandiri were unchanged on Friday, while the broader market .JKSE was up 0.4 percent.
Wednesday, September 9, 2009
More than a year ago, Malaysia Today triggered the alarm bell by revealing that Maybank, a taxpayer-owned bank, was about to blow billions in a stupid deal. None of the politicians from Pakatan Rakyat took up the case though. Maybe they felt since it was Malaysia Today that revealed it then there was no need to panic. But NST and BT also reported the matter, although they tried to make it sound like a positive move. Now, everyone is trying to lock the stable door after the horse has bolted.
NO HOLDS BARRED
Raja Petra Kamarudin
Another RM2 billion loss?
By Hussein Hamid
http://blog.limkitsiang.com/, 9 September 2009
Tell me who would be stupid enough to go and buy a bank in Indonesia? You tell me who would do that? Then if that was not enough you go and take a running jump into Pakistan and buy another bank there. But wait there is more! While they are doing that why not pick up a bank in Vietnam. In all they spent an incredible RM10.8 billion to acquire these three banks. Who would be stupid enough to do this when Maybank has been advise AGAINST making the purchase? Maybank belongs to the Government and so they will take instructions from the Government.
Taking instructions from a Government run by idiots who thinks that Maybank is also Maybank. So in essence it is the Barisan Government that is stupid enough to go and buy three Banks in Indonesia, Pakistan and Vietnam for RM10.8 billion.
Now Malayan Banking has confirmed that it lost RM2 billion in this escapade. Now which UMNO guy made a few hundred million in commission from these purchases? Who are the usual suspects? Najib as the Minister of Finance has to be suspect number one – but if MACC does the questioning they will say that he is just ‘helping with inquires’. But Najib must beware that even helping with inquiries can be dangerous if Muhyiddin has anything to do about it.
Najib must have been advised by that Nor Mohamed Yaacob because he had experience of losing more billion when he was with Bank Negara – around RM30 billion in fact.
This latest escapades would have been hysterically funny if it had happened in one of those tin pot African country where you would need half the money in the Banks just to buy a loaf of bread. And of course as far as Najib is concern this is a ‘victimless crime’ because it does no physical harm to any person or property, or to which was in fact consented, and is currently illegal if based on statutory laws. As victimless as PKFZ and all those plundering of the nation resources. Well Najib I got news for you. The Rakyat now knows that in the end they pay !! That RM37.23 million Aidilfitri bonus for Felda – we all pay. That RN500 million for Razak Baginda – we pay. Soon you will be paying for this that you are now making the Rakyat pay…and then it will be Good Night for you.
*************************************************
Maybank wins bid for Indonesia's BII
By Adeline Paul Raj
New Straits Times, 27 March 2008
MALAYSIA'S biggest bank, Malayan Banking Bhd (Maybank), has won a bid to take control of Bank Internasional Indonesia (BII) for US$1.5 billion (about RM4.8 billion), a major step for the lender to expand in the region. BII is Indonesia's sixth largest bank in terms of assets, with over 230 branches.
"This acquisition will transform our growth prospects in Indonesia and significantly enhance our regional presence," Maybank acting chief executive officer Datuk Aminuddin Md Desa told reporters at a briefing yesterday in Kuala Lumpur.
To comply with takeover rules, Maybank will also offer to buy the remaining 44 per cent of BII, which could push its total bill to US$2.7 billion (RM8.6 billion). It plans to fund this internally. The deal comes just days after it agreed to buy a 15 per cent stake in Vietnam's An Binh Bank for RM430 million.
Maybank's bid for BII, at 4.6 times book value, appears steep, an indication of the stiff fight from bigger rivals and limited opportunities in the region. Analysts said that it was probably the most expensive bank purchase ever in Indonesia. Research firms like Citigroup had expected it to pay US$1.8 billion (RM5.7 billion) for all of BII.
Aminuddin, however, believes it is worth paying the hefty premium to get a controlling stake in a crucial market like Indonesia. The country has no foreign shareholding limits and offers one of the highest growth potential in the region. "It's an opportunity we couldn't afford to miss," he said.
A Reuters report said Maybank had beaten Bank of China for BII, after Europe's biggest lender, HSBC, dropped out in the last leg of the race. According to Aminuddin, BII will start contributing profits in the third year after the deal is completed. Maybank's strategy is to tap the remittance business and, later, trade finance. With BII, revenue contribution from Maybank's international operations will jump to 30 per cent in the next one or two years from about 19 per cent currently, he said.
In the first stage of the BII deal, which could take three months to complete, Maybank will pay RM4.8 billion to buy all of Sorak Financial Holdings Pte Ltd, which holds 56 per cent of BII. Sorak is owned by Singapore investment arm Temasek (75 per cent) and South Korea's Kookmin Bank (25 per cent). Maybank will then make a RM3.8 billion offer to buy out BII's minority shareholders.
On whether Maybank intends to take BII private, Aminuddin said it was still too early to say as it would depend on how minority shareholders respond to the offer. He pointed out, however, that Indonesian law states that as long as there are at least 3,000 public shareholders, a company can be kept listed no matter what the public shareholding spread is. Maybank, whose shares traded at RM8.95 yesterday before being suspended for the announcement, expects to complete the entire deal in six months. Temasek is selling its stake in BII to comply with Indonesian laws that forbid a foreign investor from owning more than one bank.
*************************************************
Temasek comes full circle with BII stake
Early this year, however, Temasek indicated that it was selling its BII stake. Eventually, an agreement to sell the stake to Maybank for US$1.1 billion was announced in March.
Business Times, 11 August 2008
Temasek Holdings’ trouble-plagued bid to sell a stake in Indonesia's PT Bank Internasional Indonesia to Malaysia's Maybank holds a significance beyond the deal itself. More than just a transaction gone awry, it also reflects the changing realities facing the Singapore investment company.
The story of BII in Temasek's portfolio, in fact, says a lot about the shifts in its investment history over the last few years.
It will not be too much of an exaggeration to say that the road to Barclays and Merrill Lynch started with two Indonesian banks in the early 2000s. BII was one of the first major overseas investments by Temasek. Back in 2003, Temasek led a consortium called Sorak Financial Holdings, which also included Kookmin Bank, Barclays and Swiss-based ICB Financial Group Holdings, to clinch ownership of BII after reaching an agreement with the Indonesian Bank Restructuring Agency (Ibra).
Sorak paid 1.9 trillion rupiah (S$380 million at the time) for a 51 per cent stake in BII. The BII acquisition came just after Temasek and Deutsche Bank acquired a 62 per cent stake in another Indonesian lender, Bank Danamon, earlier that year.
Until then, Temasek's major investments had been mostly Singapore-centric. So BII, together with Danamon, marked the start of Temasek's overseas investments, as well as the beginning of its investments in foreign banks. Some questioned the acquisitions at the time, while others saw a political motive (buying the two banks, which were distressed entities restructured for sale by Ibra, was seen as contributing to Indonesia's recovery from the Asian crisis).
But there was also a clear commercial imperative: It was a genuine opportunity to buy financial assets at attractive valuations with the potential for strong returns — a theme that would run through to the present time.
Temasek went on to buy over Barclays and ICB's stakes in BII, and is estimated to have invested at least S$455 million in all in the bank.
Then came one of the regulatory shifts that have become all too familiar to Temasek. New foreign ownership rules under the Indonesian central bank's single presence policy, which takes effect by the end of 2010, meant that Temasek had to reduce its Indonesian bank portfolio by half.
Until late last year, the preferred option seemed to be a merger of BII and Danamon to meet the new rules. BII went as far as to say that it was drafting a proposal to merge with Danamon. The two banks complemented each other, said BII president-director Henry Ho.
Early this year, however, Temasek indicated that it was selling its BII stake. Eventually, an agreement to sell the stake to Maybank for US$1.1 billion was announced in March.
What led to the change of heart? First, it could be reflective of Temasek's growing caution, even disappointment, over the Indonesian market. The regulatory shifts and flip-flops in Indonesia, including that involving Temasek's telco investment
Indosat, suggested that reducing its Indonesian exposure might be a prudent option.
At the same time, while the financial sector in Indonesia appeared healthy, critics have charged that it was vulnerable to a sudden reversal of fortunes because of the inflow of hot money into the stock market and the spike, until recently, in international commodity prices.
The second factor might hold some irony. If the path to Barclays and Merrill had started with BII and Danamon, then the decision to sell BII could also be traced to Temasek's push west-wards. Temasek's investments in Barclays and Merrill, beginning last year, signified a new global thrust beyond regional acquisitions.
That meant realigning the portfolio, and raising funds for new investments by disposing of existing assets. There could be one more reason at play: the billions pumped into Barclays and Merrill, while undeniably long-term in nature, are currently sitting on huge paper losses. It would be nice to book a profit somewhere, and the sale of the BII stake to Maybank would have yielded a useful S$1 billion, according to some estimates.
Of course, in the neighbourhood scheme of things, Malaysian central bank Bank Negara put the brakes on the deal last month. Apparently, it was worried that Maybank could suffer losses from overpaying (not unreasonable, given that the price is 4.7 times over book) for BII. It is still unclear how things would pan out, but as it is, it is a setback for Temasek.
It is now forced to revisit its options for BII, including merging it with Danamon. And if Temasek continues to put the BII stake up for sale, it is unlikely to fetch a price as high as the one Maybank was willing to pay, given the circumstances.
Another lesson in the realities of investing in the region then. No wonder even ailing US and European banks look so attractive.
*************************************************
Najib: Deal good for Maybank
New Straits Times, October 2008
Maybank's decision to acquire a controlling stake in PT Bank Internasional Indonesia (BII) was made before the global economic downturn, Datuk Seri Najib Razak said.
Therefore, he said, it was too late for Maybank to back out of the acquisition.
Asked if the move was a good idea considering the current state of the global economy, the deputy prime minister and finance minister said the decision was a commercial one which was up to Maybank to decide on without government intervention.
Najib, however, insisted that the move was still a good one for the country.
"It (Maybank) will own the fifth largest Indonesian bank and become a regional bank," he said at the cabinet's open house at the Putra World Trade Centre on Wednesday.
Maybank shelled out RM4.26 billion for a 55.6 per cent stake in BII on Tuesday.
It was given a RM759 million rebate after the original price was deemed too high given the current economic scenario.
The initial price was more than four times the book value of the bank, resulting in several parties demanding that a new deal, at two to three times the book value, be hammered out.
Maybank stood to forfeit its RM480 million deposit from the original tender if it pulled out of the deal.
NO HOLDS BARRED
Raja Petra Kamarudin
Another RM2 billion loss?
By Hussein Hamid
http://blog.limkitsiang.com/, 9 September 2009
Tell me who would be stupid enough to go and buy a bank in Indonesia? You tell me who would do that? Then if that was not enough you go and take a running jump into Pakistan and buy another bank there. But wait there is more! While they are doing that why not pick up a bank in Vietnam. In all they spent an incredible RM10.8 billion to acquire these three banks. Who would be stupid enough to do this when Maybank has been advise AGAINST making the purchase? Maybank belongs to the Government and so they will take instructions from the Government.
Taking instructions from a Government run by idiots who thinks that Maybank is also Maybank. So in essence it is the Barisan Government that is stupid enough to go and buy three Banks in Indonesia, Pakistan and Vietnam for RM10.8 billion.
Now Malayan Banking has confirmed that it lost RM2 billion in this escapade. Now which UMNO guy made a few hundred million in commission from these purchases? Who are the usual suspects? Najib as the Minister of Finance has to be suspect number one – but if MACC does the questioning they will say that he is just ‘helping with inquires’. But Najib must beware that even helping with inquiries can be dangerous if Muhyiddin has anything to do about it.
Najib must have been advised by that Nor Mohamed Yaacob because he had experience of losing more billion when he was with Bank Negara – around RM30 billion in fact.
This latest escapades would have been hysterically funny if it had happened in one of those tin pot African country where you would need half the money in the Banks just to buy a loaf of bread. And of course as far as Najib is concern this is a ‘victimless crime’ because it does no physical harm to any person or property, or to which was in fact consented, and is currently illegal if based on statutory laws. As victimless as PKFZ and all those plundering of the nation resources. Well Najib I got news for you. The Rakyat now knows that in the end they pay !! That RM37.23 million Aidilfitri bonus for Felda – we all pay. That RN500 million for Razak Baginda – we pay. Soon you will be paying for this that you are now making the Rakyat pay…and then it will be Good Night for you.
*************************************************
Maybank wins bid for Indonesia's BII
By Adeline Paul Raj
New Straits Times, 27 March 2008
MALAYSIA'S biggest bank, Malayan Banking Bhd (Maybank), has won a bid to take control of Bank Internasional Indonesia (BII) for US$1.5 billion (about RM4.8 billion), a major step for the lender to expand in the region. BII is Indonesia's sixth largest bank in terms of assets, with over 230 branches.
"This acquisition will transform our growth prospects in Indonesia and significantly enhance our regional presence," Maybank acting chief executive officer Datuk Aminuddin Md Desa told reporters at a briefing yesterday in Kuala Lumpur.
To comply with takeover rules, Maybank will also offer to buy the remaining 44 per cent of BII, which could push its total bill to US$2.7 billion (RM8.6 billion). It plans to fund this internally. The deal comes just days after it agreed to buy a 15 per cent stake in Vietnam's An Binh Bank for RM430 million.
Maybank's bid for BII, at 4.6 times book value, appears steep, an indication of the stiff fight from bigger rivals and limited opportunities in the region. Analysts said that it was probably the most expensive bank purchase ever in Indonesia. Research firms like Citigroup had expected it to pay US$1.8 billion (RM5.7 billion) for all of BII.
Aminuddin, however, believes it is worth paying the hefty premium to get a controlling stake in a crucial market like Indonesia. The country has no foreign shareholding limits and offers one of the highest growth potential in the region. "It's an opportunity we couldn't afford to miss," he said.
A Reuters report said Maybank had beaten Bank of China for BII, after Europe's biggest lender, HSBC, dropped out in the last leg of the race. According to Aminuddin, BII will start contributing profits in the third year after the deal is completed. Maybank's strategy is to tap the remittance business and, later, trade finance. With BII, revenue contribution from Maybank's international operations will jump to 30 per cent in the next one or two years from about 19 per cent currently, he said.
In the first stage of the BII deal, which could take three months to complete, Maybank will pay RM4.8 billion to buy all of Sorak Financial Holdings Pte Ltd, which holds 56 per cent of BII. Sorak is owned by Singapore investment arm Temasek (75 per cent) and South Korea's Kookmin Bank (25 per cent). Maybank will then make a RM3.8 billion offer to buy out BII's minority shareholders.
On whether Maybank intends to take BII private, Aminuddin said it was still too early to say as it would depend on how minority shareholders respond to the offer. He pointed out, however, that Indonesian law states that as long as there are at least 3,000 public shareholders, a company can be kept listed no matter what the public shareholding spread is. Maybank, whose shares traded at RM8.95 yesterday before being suspended for the announcement, expects to complete the entire deal in six months. Temasek is selling its stake in BII to comply with Indonesian laws that forbid a foreign investor from owning more than one bank.
*************************************************
Temasek comes full circle with BII stake
Early this year, however, Temasek indicated that it was selling its BII stake. Eventually, an agreement to sell the stake to Maybank for US$1.1 billion was announced in March.
Business Times, 11 August 2008
Temasek Holdings’ trouble-plagued bid to sell a stake in Indonesia's PT Bank Internasional Indonesia to Malaysia's Maybank holds a significance beyond the deal itself. More than just a transaction gone awry, it also reflects the changing realities facing the Singapore investment company.
The story of BII in Temasek's portfolio, in fact, says a lot about the shifts in its investment history over the last few years.
It will not be too much of an exaggeration to say that the road to Barclays and Merrill Lynch started with two Indonesian banks in the early 2000s. BII was one of the first major overseas investments by Temasek. Back in 2003, Temasek led a consortium called Sorak Financial Holdings, which also included Kookmin Bank, Barclays and Swiss-based ICB Financial Group Holdings, to clinch ownership of BII after reaching an agreement with the Indonesian Bank Restructuring Agency (Ibra).
Sorak paid 1.9 trillion rupiah (S$380 million at the time) for a 51 per cent stake in BII. The BII acquisition came just after Temasek and Deutsche Bank acquired a 62 per cent stake in another Indonesian lender, Bank Danamon, earlier that year.
Until then, Temasek's major investments had been mostly Singapore-centric. So BII, together with Danamon, marked the start of Temasek's overseas investments, as well as the beginning of its investments in foreign banks. Some questioned the acquisitions at the time, while others saw a political motive (buying the two banks, which were distressed entities restructured for sale by Ibra, was seen as contributing to Indonesia's recovery from the Asian crisis).
But there was also a clear commercial imperative: It was a genuine opportunity to buy financial assets at attractive valuations with the potential for strong returns — a theme that would run through to the present time.
Temasek went on to buy over Barclays and ICB's stakes in BII, and is estimated to have invested at least S$455 million in all in the bank.
Then came one of the regulatory shifts that have become all too familiar to Temasek. New foreign ownership rules under the Indonesian central bank's single presence policy, which takes effect by the end of 2010, meant that Temasek had to reduce its Indonesian bank portfolio by half.
Until late last year, the preferred option seemed to be a merger of BII and Danamon to meet the new rules. BII went as far as to say that it was drafting a proposal to merge with Danamon. The two banks complemented each other, said BII president-director Henry Ho.
Early this year, however, Temasek indicated that it was selling its BII stake. Eventually, an agreement to sell the stake to Maybank for US$1.1 billion was announced in March.
What led to the change of heart? First, it could be reflective of Temasek's growing caution, even disappointment, over the Indonesian market. The regulatory shifts and flip-flops in Indonesia, including that involving Temasek's telco investment
Indosat, suggested that reducing its Indonesian exposure might be a prudent option.
At the same time, while the financial sector in Indonesia appeared healthy, critics have charged that it was vulnerable to a sudden reversal of fortunes because of the inflow of hot money into the stock market and the spike, until recently, in international commodity prices.
The second factor might hold some irony. If the path to Barclays and Merrill had started with BII and Danamon, then the decision to sell BII could also be traced to Temasek's push west-wards. Temasek's investments in Barclays and Merrill, beginning last year, signified a new global thrust beyond regional acquisitions.
That meant realigning the portfolio, and raising funds for new investments by disposing of existing assets. There could be one more reason at play: the billions pumped into Barclays and Merrill, while undeniably long-term in nature, are currently sitting on huge paper losses. It would be nice to book a profit somewhere, and the sale of the BII stake to Maybank would have yielded a useful S$1 billion, according to some estimates.
Of course, in the neighbourhood scheme of things, Malaysian central bank Bank Negara put the brakes on the deal last month. Apparently, it was worried that Maybank could suffer losses from overpaying (not unreasonable, given that the price is 4.7 times over book) for BII. It is still unclear how things would pan out, but as it is, it is a setback for Temasek.
It is now forced to revisit its options for BII, including merging it with Danamon. And if Temasek continues to put the BII stake up for sale, it is unlikely to fetch a price as high as the one Maybank was willing to pay, given the circumstances.
Another lesson in the realities of investing in the region then. No wonder even ailing US and European banks look so attractive.
*************************************************
Najib: Deal good for Maybank
New Straits Times, October 2008
Maybank's decision to acquire a controlling stake in PT Bank Internasional Indonesia (BII) was made before the global economic downturn, Datuk Seri Najib Razak said.
Therefore, he said, it was too late for Maybank to back out of the acquisition.
Asked if the move was a good idea considering the current state of the global economy, the deputy prime minister and finance minister said the decision was a commercial one which was up to Maybank to decide on without government intervention.
Najib, however, insisted that the move was still a good one for the country.
"It (Maybank) will own the fifth largest Indonesian bank and become a regional bank," he said at the cabinet's open house at the Putra World Trade Centre on Wednesday.
Maybank shelled out RM4.26 billion for a 55.6 per cent stake in BII on Tuesday.
It was given a RM759 million rebate after the original price was deemed too high given the current economic scenario.
The initial price was more than four times the book value of the bank, resulting in several parties demanding that a new deal, at two to three times the book value, be hammered out.
Maybank stood to forfeit its RM480 million deposit from the original tender if it pulled out of the deal.
Friday, September 4, 2009
Maybank, CIMB in big fight in Indonesia
THE stage is set and the fight begins at two levels for CIMB group and Malayan Banking Bhd (Maybank) to slug it out in Indonesia – between themselves as the two largest Malaysian banking groups – and among the formidable banking giants in Indonesia.
Between the two, it looks like CIMB has a seven-year headstart, having bought Bank Niaga at a time when many were afraid to touch Indonesian assets and at a much cheaper price of 1.5 times book value compared with Maybank’s acquisition of Bank Internasional Indonesia (BII) at 4.6 times.
While Maybank was busy settling external and internal issues related to the Indonesian government’s regulations and huge impairment charges at BII, CIMB was building its fort in Indonesia by merging Bank Niaga with Bank Lippo. That brings CIMB Niaga’s branch network in Indonesia to 654 which definitely overshadows BII’s 250 at the moment.
On an individual bank level, CIMB Niaga, the fifth largest bank in terms of asset size, and BII, which is eighth largest, will have to contend with the other banking giants in Indonesia.
CIMB’s overseas (mostly from Indonesia) pre-tax profit contribution at 22% is, of course, a source of excitement within the group. It is something that Maybank, which is already very successful in its core commercial banking operations, is eyeing with “green eyes.’’
For the second quarter ended June 30, the enlarged CIMB Niaga’s pre-tax contribution surged 82.8% to RM371mil from RM203mil. When it comes to business and competition, those that respond to new challenges can emerge winners and those that appear to be the current winners can suddenly find themselves out of the race, if they are not vigilant.
For many back home, it will be a keenly watched competition between the two Malaysian banking groups in Indonesia especially now that Maybank has made known its decision to take a one-time hit of RM1.7bil in impairment and higher loan loss provisions at BII.
With a new team in place, BII appears resolute and confident that it can make some money at the operating level by year-end although it will take three to five years to be earnings accretive.
The anticipation (and pressure) is very obvious among Maybank executives when they speak of BII. “Our first priority was to address the motorcycle financing problems,’’ said Maybank president and CEO Datuk Seri Abdul Wahid at last week’s results briefing. “That has turned around with good operating numbers. We will proceed to improve consumer, small and medium-scale enterprises and corporate banking at BII.’’
The initial expectations of BII are not high but as the momentum builds up, Maybank hopes to at least obtain a return on investment that is equivalent to the cost of debt (taken to fund the acquisition) at about 6%, which comes up to about RM474mil.
The competition between CIMB and Maybank in Indonesia will become more intense should Maybank double its number of branches at BII, by which time, CIMB would have done something else to fortify its position.
At the moment, CIMB seems pretty confident that it has the scale; something that is required in the Indonesian banking sector, while their strategists would probably be trying to figure how fast Maybank would take to carry out its BII expansion.
CIMB chief financial officer Kenny Kim recently told StarBiz that CIMB Niaga was dominant in the capital market franchise, with Niaga’s strength in retail and corporate banking and Lippo’s leadership in transactional banking. Overall, the message is to build leadership in key market segments.
All said, one should not forget that Maybank has other substantial foreign operations such as in Singapore while CIMB is about to implement a transformation programme for its Thai business.
By Yap Leng Kuen
● Senior business editor Yap Leng Kuen’s view is that reach through a strong branch presence is important but equally vital are internal strategies to extract value. Many would be watching if BII can deliver its numbers and show that it is able to earn more from a smaller physical branch network than CIMB Niaga.
Between the two, it looks like CIMB has a seven-year headstart, having bought Bank Niaga at a time when many were afraid to touch Indonesian assets and at a much cheaper price of 1.5 times book value compared with Maybank’s acquisition of Bank Internasional Indonesia (BII) at 4.6 times.
While Maybank was busy settling external and internal issues related to the Indonesian government’s regulations and huge impairment charges at BII, CIMB was building its fort in Indonesia by merging Bank Niaga with Bank Lippo. That brings CIMB Niaga’s branch network in Indonesia to 654 which definitely overshadows BII’s 250 at the moment.
On an individual bank level, CIMB Niaga, the fifth largest bank in terms of asset size, and BII, which is eighth largest, will have to contend with the other banking giants in Indonesia.
CIMB’s overseas (mostly from Indonesia) pre-tax profit contribution at 22% is, of course, a source of excitement within the group. It is something that Maybank, which is already very successful in its core commercial banking operations, is eyeing with “green eyes.’’
For the second quarter ended June 30, the enlarged CIMB Niaga’s pre-tax contribution surged 82.8% to RM371mil from RM203mil. When it comes to business and competition, those that respond to new challenges can emerge winners and those that appear to be the current winners can suddenly find themselves out of the race, if they are not vigilant.
For many back home, it will be a keenly watched competition between the two Malaysian banking groups in Indonesia especially now that Maybank has made known its decision to take a one-time hit of RM1.7bil in impairment and higher loan loss provisions at BII.
With a new team in place, BII appears resolute and confident that it can make some money at the operating level by year-end although it will take three to five years to be earnings accretive.
The anticipation (and pressure) is very obvious among Maybank executives when they speak of BII. “Our first priority was to address the motorcycle financing problems,’’ said Maybank president and CEO Datuk Seri Abdul Wahid at last week’s results briefing. “That has turned around with good operating numbers. We will proceed to improve consumer, small and medium-scale enterprises and corporate banking at BII.’’
The initial expectations of BII are not high but as the momentum builds up, Maybank hopes to at least obtain a return on investment that is equivalent to the cost of debt (taken to fund the acquisition) at about 6%, which comes up to about RM474mil.
The competition between CIMB and Maybank in Indonesia will become more intense should Maybank double its number of branches at BII, by which time, CIMB would have done something else to fortify its position.
At the moment, CIMB seems pretty confident that it has the scale; something that is required in the Indonesian banking sector, while their strategists would probably be trying to figure how fast Maybank would take to carry out its BII expansion.
CIMB chief financial officer Kenny Kim recently told StarBiz that CIMB Niaga was dominant in the capital market franchise, with Niaga’s strength in retail and corporate banking and Lippo’s leadership in transactional banking. Overall, the message is to build leadership in key market segments.
All said, one should not forget that Maybank has other substantial foreign operations such as in Singapore while CIMB is about to implement a transformation programme for its Thai business.
By Yap Leng Kuen
● Senior business editor Yap Leng Kuen’s view is that reach through a strong branch presence is important but equally vital are internal strategies to extract value. Many would be watching if BII can deliver its numbers and show that it is able to earn more from a smaller physical branch network than CIMB Niaga.
Wednesday, August 12, 2009
Maybank Board Revamp A Normal Transition, Says CEO
KUALA LUMPUR-
Malayan Banking Bhd (Maybank)'s board revamp is part of a normal transition, its chief executive officer Datuk Seri Abdul Wahid Omar said Monday.
"It is a normal course of transition," he said when asked to comment on a Singapore's Straits Times report which stated that the revamp was directed by Bank Negara Malaysia which was not happy with the high price that Maybank paid for the acquisition of Bank Internasional Indonesia (BII).
Maybank will give further details during the announcement of its financial year results on August 25, he told reporters on the sidelines of the World Capital Markets Symposium here.
The report quoted a senior government official who was involved in top-level discussions on Maybank's Indonesian venture as saying that the little-publicised revamp followed government displeasure at the controversial acquisition by Maybank last year.
The official said that the board revamp will be carried out in stages and directors who are retiring will not be re-elected to the board.
Maybank entered into an agreement to buy a 55 percent interest in BII from Sorak Financial Holdings in March 2008, which was majority-owned by Singapore's Temasek Holdings.
It agreed to pay US$1.5 billion (RM5.3 billion) for the stake and then made a tender offer for the remaining 44 percent for roughly US$1.2 billion.
Minority Shareholder Watchdog Group's chief executive officer Rita Benoy Bushon, when met during the symposium, said it was a normal process if the central bank asked to revamp the board of directors.
"However, the decision on Maybank is quite abnormal and sudden. It is surprising," she said, adding that the watchdog group would study the issue.
Maybank's main shareholders are national equity fund Permodalan Nasional Berhad and pension fund Employees Provident Fund.
Maybank sent a statement providing reasons for its board of directors' revamp on July 15 when announcing the retirement of two directors and the appointment of three new members.
In explaining the changes, Maybank then said the appointments represented a significant development in the ongoing transition and succession planning exercise implemented by the board following an initiative formulated in 2007.
"In the interest of the organisation, the execution of the transition and succession planning exercise also takes cognizance of the need to maintain elements of continuity in the composition, proceedings and stability of the board," it said.
"The board's transition and succession planning exercise is designed in line with international best practices on board governance and effectiveness," it added.
Between end-October last year, when the acquisition of BII was completed, and March this year, three of its directors have resigned.
Source BERNAMA, Aug 11
Malayan Banking Bhd (Maybank)'s board revamp is part of a normal transition, its chief executive officer Datuk Seri Abdul Wahid Omar said Monday.
"It is a normal course of transition," he said when asked to comment on a Singapore's Straits Times report which stated that the revamp was directed by Bank Negara Malaysia which was not happy with the high price that Maybank paid for the acquisition of Bank Internasional Indonesia (BII).
Maybank will give further details during the announcement of its financial year results on August 25, he told reporters on the sidelines of the World Capital Markets Symposium here.
The report quoted a senior government official who was involved in top-level discussions on Maybank's Indonesian venture as saying that the little-publicised revamp followed government displeasure at the controversial acquisition by Maybank last year.
The official said that the board revamp will be carried out in stages and directors who are retiring will not be re-elected to the board.
Maybank entered into an agreement to buy a 55 percent interest in BII from Sorak Financial Holdings in March 2008, which was majority-owned by Singapore's Temasek Holdings.
It agreed to pay US$1.5 billion (RM5.3 billion) for the stake and then made a tender offer for the remaining 44 percent for roughly US$1.2 billion.
Minority Shareholder Watchdog Group's chief executive officer Rita Benoy Bushon, when met during the symposium, said it was a normal process if the central bank asked to revamp the board of directors.
"However, the decision on Maybank is quite abnormal and sudden. It is surprising," she said, adding that the watchdog group would study the issue.
Maybank's main shareholders are national equity fund Permodalan Nasional Berhad and pension fund Employees Provident Fund.
Maybank sent a statement providing reasons for its board of directors' revamp on July 15 when announcing the retirement of two directors and the appointment of three new members.
In explaining the changes, Maybank then said the appointments represented a significant development in the ongoing transition and succession planning exercise implemented by the board following an initiative formulated in 2007.
"In the interest of the organisation, the execution of the transition and succession planning exercise also takes cognizance of the need to maintain elements of continuity in the composition, proceedings and stability of the board," it said.
"The board's transition and succession planning exercise is designed in line with international best practices on board governance and effectiveness," it added.
Between end-October last year, when the acquisition of BII was completed, and March this year, three of its directors have resigned.
Source BERNAMA, Aug 11
Monday, August 10, 2009
The road ahead for Maybank
Saturday August 8, 2009
By JAGDEV SINGH SIDHU
Its push for regionalisation will continue as other players seek opportunities in the region as well.
The changing landscape of banking has brought about many opportunities for banks in the country and it is no different for Malayan Banking Bhd, the largest bank in the country.
Maybank, like many others, is set on growing its staple businesses and is fleshing out the segments in which it is weak. But what excites the bank the most has been the source of much of its recent criticism.
Regionalisation, which had come at a great cost to Maybank, is seen as a segment of business that excites the upper echelon of management. The prospect of tagging on high-growth markets to the more placid growth markets in Malaysia is seen as the ideal tonic for the bank.
“For the banking entity, the push for regionalisation will continue and others will be looking for opportunities in the region as well,’’ says Maybank president and CEO Datuk Seri Abdul Wahid Omar.
Maybank spent RM11.1bil acquiring three banks just before the financial crisis engulfed much of the world.
The resulting recession seen in much of the developed world dragged down growth rates and dampened prospects throughout the world.
For Maybank, it had an added task of managing a transition of ownership, particularly in the next crown jewel of its overseas operations – Bank Internasional Indonesia (BII).
“As far as BII is concerned, because of the transition, it has not fully grown for the moment. And we want to make sure we put in place the necessary infrastructure before we push for growth. Our asset size has been relatively flat over the past one year,’’ he says. “We will start to expand a bit more aggressively from September.”
The under-banked market in Indonesia – where the banking penetration is just 33% to gross domestic product (GDP) – offers tremendous medium to long-term prospects to Maybank.
The market in Indonesia is also a fertile ground for Maybank to start cultivating its Islamic finance business as that business makes up just 5% of the market there.
The excitement also extends to Malaysia where Wahid says Islamic banking makes up 17% of total assets but the growth is twice as fast as conventional banking.
“As you cross the 20% to 25% range and reach a third, then you will see critical mass and with that innovation will come,’’ he says.
Wahid says the Islamic capital market is also interesting although it has been affected by the economic environment and the availability of conventional funding at very low rates.
“But as the economy recovers, capital-market activity will return such as sukuks and various other structures coming into place,’’ he says. “We also have takaful under Etiqa and some wealth management under Maybank Islamic. Eventually we are looking to consolidate everything under one entity, and that is Maybank Islamic.’’
Another exciting business segment for Wahid is Internet banking.
Maybank currently has the largest number of customers who do banking online through its Internet banking channel – 3.3 million out of a customer base of eight million – and he expects them to conduct more diverse transactions in the future.
“Currently, a lot of them are doing basic transactions but we are beginning to see other types of transactions such as the purchase of other products and money transfers,’’ he says. “Even though the penetration on mobile is not there yet, it is something we see happening in the next five years.’’
Domestically, Wahid feels Maybank could do more in investment banking and stockbroking.
“Although in debt capital markets we are ranked second, in the equity capital markets we are probably number three or four,’’ he says, adding that he wants to close the gap with the leaders.
Maybank, he says, has spent the downtime in investment banking this year on beefing up skills and resources so as to capitalise when the markets pick up next year.
In stockbroking, Wahid says Maybank is ranked seventh or eighth and that more needs to be done to tap the group’s vast branch network to grow that business.
“Once we get the infrastructure improved and strengthen our management on the broking side, and coupled with Internet banking and broking, we can make good advancement,’’ he says.
On asset management, Wahid says Maybank has made a conscious decision to park its asset management business under its insurance business so that the group can have a sizeable amount of funds under management.
“With that we can look at RM20bil of assets under management and from there we can strengthen our capabilities before going out and managing third-party clients,’’ he says, adding that the group is at least a couple of years away from managing a substantial amount of business for third-party clients.
“We also need to rebuild our unit trust management,’’ he says.
StarBizWeek: Has the crisis opened an avenue for Maybank?
Wahid: It has, from the corporate banking perspective. The large foreign players have slowed down and allowed us to gain dominance and prominence in that market. It has also helped us in terms of pricing.
Until recently it was so competitive, and many corporates were enjoying 50-basis-point spread over the cost of funds. But now the pricing is better and these people are paying close to 100 basis points.
What are the problem areas?
In terms of non-performing loans (NPLs), they are manageable. The net NPL ratio continues to decline. At end-March, it was 1.76% compared with the industry’s 2.2%.
We expect the number to have improved further after June.
There are concerns there could be a delayed effect, in the second half of the year, from customers who are suffering and who have run out of cash and no longer enjoy the indulgence from banks. So far, we think it is manageable.
The good news is that the economy has seen its bottom in the first quarter. We should be seeing improvement in the second quarter. From minus 7.7%, we should be seeing upwards of 2% on a quarter-on-quarter basis.
As the head of the Association of Banks, what is your view on the state of the banking industry?
Malaysia must be the strongest in this region. In terms of the capitalisation ratio as at May, I think the industry’s RWCR (risk-weighted capital ratio) was 14.2% and the net NPL ratio was 2.2%. The net NPL ratio has been holding steady for the past nine months. Some banks are recording lower profits but in the scheme of things it is still profitable.
Should banks adopt the model of conservatism and safety especially in view of things that have happened overseas or should they be a little more adventurous?
We have to go back to basics. The role of banks is to mobilise savings and rechannel them to the productive sectors of the economy.
And the protection of depositors’ money should be paramount. I don’t think banks should be overly adventurous and change their risk profile and jeopardise deposits.
As you progress, there will be various risk management instruments, such as deposit insurance, but these are just additional tools.
Given the increasing regional presence of large banks, do you still think the future of these banks is still Malaysia?
The domestic market will have its limits in terms of growth. Domestic loans growth is in single digit and if a bank wants growth, it has to look beyond our shores in markets where the banking penetration is relatively low.
Indonesia has a population of 235 million and the banking penetration there in terms of loans to GDP is 31%. It means there is high growth potential. Expanding operations to capture that growth and later on profit would be highly relevant for us.
But that does not mean we must ignore our domestic market. There is no way any company can claim to be a regional or global champion if its home base is weak. The home base will provide the core earnings for a bank to be able to expand abroad.
Are you paying more attention to foreign operations than local at this moment?
Before you grow abroad you have to make sure you have the necessary financial and human capital resources. On human capital, it is important to compartmentalise and have a dedicated team to run the international operations.
The way we run it, as in the case of Indonesia, is that we make sure we assemble a solid team on-site in Jakarta to run it as a full-fledged bank there. My role as group CEO is to guide them from a strategic perspective. I have managers in international (operations) who will oversee them and I spend about two days a month in Jakarta with management to go over the strategy and their performance.
You spent RM11.1bil buying three assets abroad, how important is expansion abroad to the future of Maybank?
I think it is important from a growth perspective. Foreign loans account for 30% of the group’s total and the idea is to have foreign operations contribute about 40% of loans.Eventually, as we grow further, it will be 50:50.
In terms of profit contribution, we are looking at one third initially and over time that will increase.
In terms of growth, they provide double-digit growth prospects. It is also important from the perspective of being relevant to our customers.
Having expanded their operations in Singapore, Indonesia, the Philippines and Indochina, we are able to support them. We start by providing support to customers we are familiar with. Over time, we will develop a strong client base in Indonesia as our base there grows. There will be benefits of having a cross-border linkage.
How would the competitive landscape in those countries influence decisions and the business model?
We do not adopt a one-size-fits-all concept. Banking operations in each country are tailor made to the situation in each country.
We apply the same risk-management standards in every country even though the business model can be different.
How will Islamic banking feature in an international perspective?
We are already the largest Islamic bank in terms of assets and we want to be holistic. We have been improving in terms of our loans to deposit ratio.
The next is to look at Indonesia. It’s still early days but with BII being established there, the setting up of a parallel syariah banking entity will be our next goal.
Islamic finance in Indonesia is not yet 5% of the banking assets there. Like Malaysia, it is growing very fast.
We also look at other non-traditional Islamic markets such as Singapore.
There is a high level of Islamic finance awareness and we have tried introducing some new products in Singapore.
By JAGDEV SINGH SIDHU
Its push for regionalisation will continue as other players seek opportunities in the region as well.
The changing landscape of banking has brought about many opportunities for banks in the country and it is no different for Malayan Banking Bhd, the largest bank in the country.
Maybank, like many others, is set on growing its staple businesses and is fleshing out the segments in which it is weak. But what excites the bank the most has been the source of much of its recent criticism.
Regionalisation, which had come at a great cost to Maybank, is seen as a segment of business that excites the upper echelon of management. The prospect of tagging on high-growth markets to the more placid growth markets in Malaysia is seen as the ideal tonic for the bank.
“For the banking entity, the push for regionalisation will continue and others will be looking for opportunities in the region as well,’’ says Maybank president and CEO Datuk Seri Abdul Wahid Omar.
Maybank spent RM11.1bil acquiring three banks just before the financial crisis engulfed much of the world.
The resulting recession seen in much of the developed world dragged down growth rates and dampened prospects throughout the world.
For Maybank, it had an added task of managing a transition of ownership, particularly in the next crown jewel of its overseas operations – Bank Internasional Indonesia (BII).
“As far as BII is concerned, because of the transition, it has not fully grown for the moment. And we want to make sure we put in place the necessary infrastructure before we push for growth. Our asset size has been relatively flat over the past one year,’’ he says. “We will start to expand a bit more aggressively from September.”
The under-banked market in Indonesia – where the banking penetration is just 33% to gross domestic product (GDP) – offers tremendous medium to long-term prospects to Maybank.
The market in Indonesia is also a fertile ground for Maybank to start cultivating its Islamic finance business as that business makes up just 5% of the market there.
The excitement also extends to Malaysia where Wahid says Islamic banking makes up 17% of total assets but the growth is twice as fast as conventional banking.
“As you cross the 20% to 25% range and reach a third, then you will see critical mass and with that innovation will come,’’ he says.
Wahid says the Islamic capital market is also interesting although it has been affected by the economic environment and the availability of conventional funding at very low rates.
“But as the economy recovers, capital-market activity will return such as sukuks and various other structures coming into place,’’ he says. “We also have takaful under Etiqa and some wealth management under Maybank Islamic. Eventually we are looking to consolidate everything under one entity, and that is Maybank Islamic.’’
Another exciting business segment for Wahid is Internet banking.
Maybank currently has the largest number of customers who do banking online through its Internet banking channel – 3.3 million out of a customer base of eight million – and he expects them to conduct more diverse transactions in the future.
“Currently, a lot of them are doing basic transactions but we are beginning to see other types of transactions such as the purchase of other products and money transfers,’’ he says. “Even though the penetration on mobile is not there yet, it is something we see happening in the next five years.’’
Domestically, Wahid feels Maybank could do more in investment banking and stockbroking.
“Although in debt capital markets we are ranked second, in the equity capital markets we are probably number three or four,’’ he says, adding that he wants to close the gap with the leaders.
Maybank, he says, has spent the downtime in investment banking this year on beefing up skills and resources so as to capitalise when the markets pick up next year.
In stockbroking, Wahid says Maybank is ranked seventh or eighth and that more needs to be done to tap the group’s vast branch network to grow that business.
“Once we get the infrastructure improved and strengthen our management on the broking side, and coupled with Internet banking and broking, we can make good advancement,’’ he says.
On asset management, Wahid says Maybank has made a conscious decision to park its asset management business under its insurance business so that the group can have a sizeable amount of funds under management.
“With that we can look at RM20bil of assets under management and from there we can strengthen our capabilities before going out and managing third-party clients,’’ he says, adding that the group is at least a couple of years away from managing a substantial amount of business for third-party clients.
“We also need to rebuild our unit trust management,’’ he says.
StarBizWeek: Has the crisis opened an avenue for Maybank?
Wahid: It has, from the corporate banking perspective. The large foreign players have slowed down and allowed us to gain dominance and prominence in that market. It has also helped us in terms of pricing.
Until recently it was so competitive, and many corporates were enjoying 50-basis-point spread over the cost of funds. But now the pricing is better and these people are paying close to 100 basis points.
What are the problem areas?
In terms of non-performing loans (NPLs), they are manageable. The net NPL ratio continues to decline. At end-March, it was 1.76% compared with the industry’s 2.2%.
We expect the number to have improved further after June.
There are concerns there could be a delayed effect, in the second half of the year, from customers who are suffering and who have run out of cash and no longer enjoy the indulgence from banks. So far, we think it is manageable.
The good news is that the economy has seen its bottom in the first quarter. We should be seeing improvement in the second quarter. From minus 7.7%, we should be seeing upwards of 2% on a quarter-on-quarter basis.
As the head of the Association of Banks, what is your view on the state of the banking industry?
Malaysia must be the strongest in this region. In terms of the capitalisation ratio as at May, I think the industry’s RWCR (risk-weighted capital ratio) was 14.2% and the net NPL ratio was 2.2%. The net NPL ratio has been holding steady for the past nine months. Some banks are recording lower profits but in the scheme of things it is still profitable.
Should banks adopt the model of conservatism and safety especially in view of things that have happened overseas or should they be a little more adventurous?
We have to go back to basics. The role of banks is to mobilise savings and rechannel them to the productive sectors of the economy.
And the protection of depositors’ money should be paramount. I don’t think banks should be overly adventurous and change their risk profile and jeopardise deposits.
As you progress, there will be various risk management instruments, such as deposit insurance, but these are just additional tools.
Given the increasing regional presence of large banks, do you still think the future of these banks is still Malaysia?
The domestic market will have its limits in terms of growth. Domestic loans growth is in single digit and if a bank wants growth, it has to look beyond our shores in markets where the banking penetration is relatively low.
Indonesia has a population of 235 million and the banking penetration there in terms of loans to GDP is 31%. It means there is high growth potential. Expanding operations to capture that growth and later on profit would be highly relevant for us.
But that does not mean we must ignore our domestic market. There is no way any company can claim to be a regional or global champion if its home base is weak. The home base will provide the core earnings for a bank to be able to expand abroad.
Are you paying more attention to foreign operations than local at this moment?
Before you grow abroad you have to make sure you have the necessary financial and human capital resources. On human capital, it is important to compartmentalise and have a dedicated team to run the international operations.
The way we run it, as in the case of Indonesia, is that we make sure we assemble a solid team on-site in Jakarta to run it as a full-fledged bank there. My role as group CEO is to guide them from a strategic perspective. I have managers in international (operations) who will oversee them and I spend about two days a month in Jakarta with management to go over the strategy and their performance.
You spent RM11.1bil buying three assets abroad, how important is expansion abroad to the future of Maybank?
I think it is important from a growth perspective. Foreign loans account for 30% of the group’s total and the idea is to have foreign operations contribute about 40% of loans.Eventually, as we grow further, it will be 50:50.
In terms of profit contribution, we are looking at one third initially and over time that will increase.
In terms of growth, they provide double-digit growth prospects. It is also important from the perspective of being relevant to our customers.
Having expanded their operations in Singapore, Indonesia, the Philippines and Indochina, we are able to support them. We start by providing support to customers we are familiar with. Over time, we will develop a strong client base in Indonesia as our base there grows. There will be benefits of having a cross-border linkage.
How would the competitive landscape in those countries influence decisions and the business model?
We do not adopt a one-size-fits-all concept. Banking operations in each country are tailor made to the situation in each country.
We apply the same risk-management standards in every country even though the business model can be different.
How will Islamic banking feature in an international perspective?
We are already the largest Islamic bank in terms of assets and we want to be holistic. We have been improving in terms of our loans to deposit ratio.
The next is to look at Indonesia. It’s still early days but with BII being established there, the setting up of a parallel syariah banking entity will be our next goal.
Islamic finance in Indonesia is not yet 5% of the banking assets there. Like Malaysia, it is growing very fast.
We also look at other non-traditional Islamic markets such as Singapore.
There is a high level of Islamic finance awareness and we have tried introducing some new products in Singapore.
Bank Islam bids for Bank Muamalat stake-paper
KUALA LUMPUR -
Malaysia's Bank Islam is in talks with several stakeholders in Indonesia's PT Bank Muamalat and wants to take control of the Indonesian Islamic bank, the Business Times reported on Monday.
Without citing named sources, the newspaper said that Bank Islam was close to a deal with at least one of the stakeholders.
No one from Bank Islam was immediately available for comment.
Bank Muamalat's main shareholders are based in the Gulf and it had a net profit of 207 billion rupiah ($20.93 million) in 2008, the paper said.
Malaysia's Bank Islam is in talks with several stakeholders in Indonesia's PT Bank Muamalat and wants to take control of the Indonesian Islamic bank, the Business Times reported on Monday.
Without citing named sources, the newspaper said that Bank Islam was close to a deal with at least one of the stakeholders.
No one from Bank Islam was immediately available for comment.
Bank Muamalat's main shareholders are based in the Gulf and it had a net profit of 207 billion rupiah ($20.93 million) in 2008, the paper said.
Wednesday, July 1, 2009
Maybank may boost BII asset size
MALAYAN Banking Bhd, Malaysia’s largest bank by assets, said it’s prepared to inject more funds into PT Bank Internasional Indonesia, aiming to double the unit’s asset size within five years.
“If we wish to double or triple the asset size, clearly we need to put in a bit more capital,” said Abdul Wahid Omar, chief executive officer of Maybank, as the Kuala Lumpur-based lender is known.
“We will be looking at doubling within five years.”
Any additional capital for Bank Internasional, which Maybank bought last year, would be financed by Maybank’s internally generated funds, Abdul Wahid said in the interview today.
Maybank spent more than US$2 billion buying bank stakes in Indonesia, Pakistan and Vietnam last year, seeking growth overseas amid increased competition.
Malaysian banks are now offering loans at rates that are “below the economic level,” Abdul Wahid said today. - Bloomberg
“If we wish to double or triple the asset size, clearly we need to put in a bit more capital,” said Abdul Wahid Omar, chief executive officer of Maybank, as the Kuala Lumpur-based lender is known.
“We will be looking at doubling within five years.”
Any additional capital for Bank Internasional, which Maybank bought last year, would be financed by Maybank’s internally generated funds, Abdul Wahid said in the interview today.
Maybank spent more than US$2 billion buying bank stakes in Indonesia, Pakistan and Vietnam last year, seeking growth overseas amid increased competition.
Malaysian banks are now offering loans at rates that are “below the economic level,” Abdul Wahid said today. - Bloomberg
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