Bank Permata to Sell NPL

Source: Bank Permata's Instagram @permatabank

JAKARTA (TheInsiderStories)—PT Bank Permata Tbk (BNLI) plans to sell its non-performing loans (NPL) at the value of Rp1 trillion-Rp1.5 trillion as a way to improve its financial performance this year.

One specific NPL that will be sold is the Rp1.2 trillion credit to PT Garansindo, a brand holding sole agent of luxurious cars, such as Fiat, Alfa Romeo, Chrysler, Jeep, and Dodge, and motocycles, such as Ducati, Italjet, and Peugeot Scooters from the US and Europe.

Due to the NPL, Permata, which is owned by Astra Group and Standard Chartered Bank, incurred a loss of Rp6.48 trillion in 2016, which was considered as the largest loss in the history of Indonesian banks. By the end of this year, if the NPL selling succeeds, Bank Permata  potentially books a net income of Rp1.5 trillion or an increase of 100 per cent (year on year) compared to its income last year.

Starting its business in 2001, Garansindo established a holding company named Garasindo Global Corpora in 2016 with former industry minister Fahmi Idris as president commissioner, Hanura Chairman and Coordinating Minister of Politics, Law and Security Wiranto as vice president commissioner, and former police commander-in-chief General (retired) Anton Bachrul Alam as commissioner.

This holding company has some subsidiaries which includes PT Garansindo Inter Global, PT Plaza Garansindo and PT Garansindo Automobile.

TheInsiderStories tried to confirm the NPL selling plan to Wholesale Banking Director of Bank Permata Darwin Wibowo on Tuesday (15/05), but he refused to confirm it. He only stated that the company will do all options to decrease the NPL, including the NPL selling option.

The company booked 4.6 per cent in gross NPL ratio in the first quarter of this year, slightly better than gross NPL ratio in the first quarter 2017 that reached 6.4 per cent.

Bank Permata sold Rp1.12 trillion NPL in March 2017 to a Luxemburg company CVI CVF III LUX Master SARL.

The Bank booked a decrease of  63.77 per cent in net profit in the first quarter of 2018 to Rp164 billion from Rp452.65 billion in the first quarter of 2017. Its income from interest dropped from Rp 2.68 trillion during the first quarter 2017 to Rp2.25 trillion in the first quarter this year.

However, the company recorded 4.61 per cent in loan growth to Rp99.8 trillion by March 2018 from Rp95.4 trillion by March 2017.

In terms of liquidity, Bank Permata recorded 89 per cent in the loan to deposit ratio (LDR) in the first quarter of 2018 compared to 75 per cent in the same period last year.