PT Bank Central Asia Tbk (IDX: BBCA) announced to distribute an interim dividend Rp98 a share with total values of Rp2.4 trillion (US$171 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian bank with the largest capitalization, PT Bank Central Asia Tbk (IDX: BBCA) announced to distribute an interim dividend Rp98 a share with total values of Rp2.4 trillion (US$170.21 million). Hartono family through PT Dwimuria Investama Andalan will receives Rp1.33 trillion from the program.

The company owned by the richest men in Indonesia and the owner of the Djarum Group, Robert Budi Hartono and Michael Bambang Hartono. While the lender is the company with the largest market capitalization on the Indonesia Stock Exchange, worth of Rp764.92 trillion at the end of November 2020.

The interim dividend will be given to shareholders will be distributed on Dec. 22. The lender has reported in the first nine month of 2020, the net profit stood at Rp20.04 trillion, fell by 4.2 percent of last year of Rp20.9 trillion. The decreased caused Bank Central Asia increased its reserves from Rp5.6 trillion to Rp9.1 trillion. The outstanding loans also dropped by 0.6 percent to Rp581.9 trillion at the end of September.

In June, the bank has planned to acquire PT Rabobank International Indonesia with worth of Rp799 billion. Based on the announcement, the acquisition will be made directly by the company and its leasing unit, PT BCA Finance. The bank will later have 3.72 million shares or representing 99.99 percent and one share for its subsidiary.

It said, the final acquisition value will refer to Rabobank‘ equity value adjusted at the time of the acquisition. The lender will use internal cash to finance the acquisition planned. In 2019, the lender bought Rabobank Indonesia shares from Cooperative Rabobank UA, PT Aditirta Suryasentosa, PT Antarindo Optima, PT Antariksabuana Citanagara and PT Mitra Usaha Kencana Sejati.

According to the president director, Jahja Setiaatmadja, the acquisition is one of the company’ business expansion strategies. The company will merge Rabobank Indonesia with one of their subsidiaries. While, Rabobank has stopped its operations in Indonesia from April 2019 to June 2020. This was done after 29 years of operation in Indonesia.

Bank Central Asia has subsidiares engaged in car financing, motorcycle financing, general insurance, life insurance, banking, Islamic banking, securities, remittance and venture capital investment. The lender’ large customer base provides potential for the business development of subsidiaries through cross selling, and conversely the business of subsidiaries will strengthen customer relationships.

US$1=Rp14,100

Written by Editorial Staff, Email: theinsiderstories@gmail.com