JAKARTA (TheInsiderStories) – State-owned lender PT Bank Negara Indonesia Tbk (IDX: BBNI) was rumored to act as a standby buyer of a right issue of medium-sized lender affiliated with tycoon Aksa Mahmud’s conglomerate Bosowa Group, PT Bank Bukopin Tbk (IDX:BBKP)’s shares.
“We are still reviewing and exploring the financial statement of (Bukopin),” Vice President of BNI Herry Sidharta told TheInsiderStories on Thursday (03/05)
Bank Bukopin is planning to hold a rights issue in June to strengthen its capital and expand its business. According to sources close to the matter, four entities have shown interests in becoming standby buyers, including BBNI.
The four entities include a Hong Kong based private equity consortium, a consortium that has ties with one of the biggest bank in Asia, BBNI, and a private equity firm that once owned a bank.
Recently, Indonesian Financial Service Agency is scrutinizing Bukopin’s last year financial statement, due to issue of financial record manipulation.
The company was suspected to providing misleading information related to the company’s financial statements. This include inaccuracies in reporting credit card receivables.
The financial statement discrepancies were responded negatively by investors with the decline in the price of the shares of the lender.
Bank Bukopin posted poor performance last year, with profit was down 54 percent to Rp112.37 billion (US$8.14 million) from Rp248.95 billion in 2016, driven by bad performance of disbursed loans. The bank’s non-performing loans (NPL) gross increase to 8.54 percent from 3.77 percent.
By the end of 2017, the capital adequacy ratio fell to 10.51 percent from 11.37 per cent, while Return on assets only 0.09 per cent, below banking industry at 3 percent.
The bank is eyeing between 10 and 15 percent growth in profits this year as it expects loans to grow between 5 and 10 percent.
The company’s loan growth target for 2018 was 8 percent, citing political considerations resulting from the regional elections this year and general and presidential elections in 2019.
As of November 2017, Bank Bukopin had disbursed Rp. 70.17 trillion in loans, a 3.07 percent year-on-year (yoy) increase compared to the figure in 2016. It booked Rp. 723.01 billion in profits, down 30.38 percent from the figure in 2016.
Currently, Bosowa Corporindo, part of Aksa Mahmud’s Bosowa group, controls 30 percent of the shares in Bukopin. Kopelindo, the staff co-operative at state procurement agency by state-owned logistic firm Perum Bulog has 18.09 percent of the bank’s shares and the Indonesian government 11 percent. The remainder of the shares are publicly owned.