JAKARTA (TheInsiderStories) – Indonesia’s largest private bank, PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiary, PT BCA Finance bought all shares of PT Bank Rabobank International Indonesia of Rp397 billion (US$28.35 million). The transaction made Rabobank Indonesia a subsidiary of BCA, the company said on an official statement on Wednesday (12/11).
The purchase of Rabobank Indonesia shares was carried out on Dec 11, 2019. In the agreement, BCA bought Rabobank Indonesia shares from Cooperative Rabobank UA, PT Aditirta Suryasentosa, PT Antarindo Optima, PT Antariksabuana Citanagara and PT Mitra Usaha Kencana Sejati as many as 3.71 million shares representing all Rabobank Indonesia’s capital.
President Director of BCA Jahja Setiaatmadja said the acquisition is one of the company’s business expansion strategies. The lender will merge Rabobank Indonesia with one of their subsidiaries, yet it had not yet determined the subsidiary.
Meanwhile, Rabobank Indonesia has stopped its operations in Indonesia from April 2019 to June 2020. This was done after 29 years of operation in Indonesia.
President Director of Rabobank Indonesia Jos Luhukay said the Rabobank Group stopped operations in Indonesia because the company concentrated on supply chains in the food and agriculture sector. Therefore, Rabobank’s business structure outside the Netherlands will also be prioritized in wholesale banking and no longer in the retail segment. This also resulted in the stopping of Rabobank’s business in Poland, Ireland, and North America.
Luhukay explained, the closure of Rabobank Indonesia was entirely a decision of the Rabobank Group‘s strategy and was not related to Indonesia’s economic conditions. Rabobank Group also remains committed to the development of the food and agriculture sector in Indonesia by continuing to work with wholesale customers.
Earlier, BCA had acquired all shares of PT Bank Royal Indonesia. BCA and BCA Finance bought Bank Royal’s shares from PT Royalindo Investa Wijaya, Leslie Soemadi, Ibrahim Soemadi, Nevin Soemadi and Ko Sugiarto.
The signing of the share purchase agreement was carried out on April 16, 2019. Based on the agreement, the buyers (BCA and BCA Finance) bought 2.87 million shares of Bank Royal with a value of Rp1 trillion, representing all the capital in the Bank Royal.
Last month, the lender announced to cooperate with Chinese financial technology (FinTech) companies, Alipay and WeChat Pay. Setiaatmadja explained that third parties is currently in the process of finalizing the business processes and schemes.
While, Vera Eve Lim, the finance director, the finance director stated, the company will provide electronic data capture (EDC) to manage and process the transactions. The machine will be placed in merchants around tourist objects that Chinese tourists frequently visited, she adds.
Setiaatmadja stated they will transform Bank Royal, the new entity to become a P2P lending provider. To add the service, BBCA also looking at other digital companies or in cooperation scheme.
In the third quarter (3Q) of 2019, the lender recorded a net profit of Rp20.9 trillion, an increase of 13 percent on an annual basis (YoY). In line with the net profit growth, net interest income also rose 12.2 percent to Rp37.4 trillion from a year ago.
At the same time, the loan disbursement increased by 10.9 percent in the 3Q of 2019. The bank was able to record deposits growth of 10.4 percent to Rp683.1 trillion.
The lender also maintained a solid financial ratio. Capital adequacy ratio (CAR) and loan to deposit ratio (LDR) recorded at 23.8 percent and 80.6 percent, respectively. While the return to assets (ROA) recorded at 4 percent.
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