JAKARTA: Bank MNC International, a listed lender controlled by business conglomerate MNC Group, is planning to acquire several banks to strengthen its financial unit, the group’s chief executive Hary Tanoesoedibjo said on Friday (03/02).
“We’re working on a plan to merge several banks with Bank MNC International to boost its performance,” Hary told the press at the Indonesia Stock Exchange (IDX). In addition to the new acquisitions, Hary also plans to grow the financial unit with organic expansion growth without acquisition by increasing sales and output internally.
“I will do both if necessary,” Hary said.However, he did not disclose which banks the group will acquire and when the lender will execute the corporate action.
As of Sept. 30 last year, the lender’s core equity capital stood at Rp 1.54 trillion ($115 million), a 54.2 percent increase from Rp 1.04 trillion in the same period the year prior, according to its financial report published last year.
Bank MNC International is a member of the country’s second-tier bank or BUKU a group of lenders with core equity capital of between Rp 1 trillion and Rp 5 trillion. The bank’s net income increased slightly by 1.7 percent to Rp 7.76 billion between January and September last year from Rp 7.64 billion in the same period the year before.
The lender’s performance last year was boosted mainly by its net interest income income from interest charges minus payment for depositors which shot up 27.17 percent to Rp 275.16 billion in the first nine months of last year from Rp 216.36 billion in the same period in 2015.
Bank MNC International used to be known as Bank ICB Bumiputera the lender changed its name in 2014. Its core businesses range from providing savings and deposit facilities, car and property loans, remittance to trade finance.
The lender is part of the MNC Group, a media, financial services and property conglomerate. Bank MNC International shares, which trade under the BABP stock ticker at the IDX, closed 1.37 percent lower at Rp 72 on Friday, in contrast to the 0.13 percent gain in the benchmark index.
