SOME BANKS IN INDONESIA PREPARES ACTION acquisitions

Year of the tiger has become a busy year for the bankers in the country. Some top-level bank in the country is now preparing a variety of corporate actions, both to strengthen and broaden capital business octopus. One way is through acquisition strategy.

CIMB Niaga example. National private banks majority owned subsidiary of CIMB Malaysia is going to acquire financing to raise the motor vehicle credit. Possible acquisition we have learned, said CIMB Niaga President Director Arwin Rasyid.

This bank has made an assessment in two to three finance companies. Arwin said, possibly, the acquisition process can be realized at the end of the first quarter. Bank Niaga intend to be the majority owner of the company's Emerging Markets.

Arwin not specify which funds are prepared for it. To be sure, finance companies drill which he had considerable assets, but the price is not expensive. Acquisition value in the range of hundreds of billions, we will use internal funds for this, obviously Arwin.

The seriousness of CIMB Niaga offers motor vehicle loans are also apparent in their plans to revitalize his own finance company, which is Saseka Gelora Finance. We'll turn it on again and the name and we will replace the directors, clearly Arwin.

Bank Niaga has a 96.01% in Saseka. Value out CIMB Niaga's credit standing of a motor vehicle to reach Rp 8.8 trillion. Potential consumer loans, including vehicle loans and home ownership, the bank's credit growth support the results of the merger over the past year.

If Bank Niaga will focus on the cultivation of motor vehicle loans by acquiring companies multifinance, another BNI strategy. Banks bearing the number 46 was admitted acquiring warned local banks to sharpen market penetration of their micro credit.

BNI president director Gatot M. Suwondo explains, this acquisition is included in the list of the bank's business plan medium-term. Intention for the acquisition was in 2011, said Billy. In the long-term plan, the candidate's subsidiary will be working on the motor BNI in microcredit markets middle class.

Another business plan is in sight is the release of ownership of shares in BNI Securities about 30%. Finance Director BNI Tjay Soen Yap added, BNI would prefer remain a majority shareholder in the subsidiary. Usually a lot of dating potential investors who want to become the majority owner, but the current position we want to be the majority first. If they had wanted a majority, just to talk prices and terms and condition of his, said Yap.

Other BNI plan was to publish a junior bonds (sub debt) worth U.S. $ 300 million to strengthen its capital. This plan was almost complete. Constraint rules Bank Indonesia (BI) which had raised the other day was getting brighter.

Yap explained that informal talks with the BI has been done. We are still waiting for formal BI effort to talk with rating agencies, rating agencies that can provide reasonable rankings for our sub-debt.

If the rating agencies dealing with smooth, sub-debt yield BNI can be fitted with economical price. Published in December 2009 if it could yield 7%. BNI plans to realize the sub debt issuance in the first half of this year. BNI hope it can yield below 10%. If on top of that, is not economical, Yap said.

In addition to sub-debt issue to strengthen capital, BNI is an agenda of new stock issuance in the second half of this year. Targets could raise between USD 3 trillion to Rp 4 trillion. The total value of the funds needed to strengthen capital BNI in 2010 from various corporate actions to reach Rp 7 trillion.

Bank Niaga was not to be outdone. Now, they have studied the option of sub debt issuance and the rights issue as part of capital management. Sub debt issuance planned U.S. $ 300 million. This is related to our debt maturing in 2010, said Arwin.


OCBC is also an agenda of sub debt issuance. What's it worth, we are not willing to mention, said OCBC NISP Director Surjaudaja Parvati.

CIMB, BNI, and Profit handful of OCBC
Three banks, namely Bank CIMB Niaga (CIMB), Bank BNI, and OCBC Bank NISP recorded a profit increase for 2009 and fantastic. Bank Niaga's net profit grew 131%, BNI rose 103%, and OCBC NISP profit rose 38%.

Management of each bank to explain, this profit increase is because of their efficiency and interest income. Ends, their operating income increased. 2009 end of year ago, Bank Niaga profit USD 1.6 trillion, BNI Rp 2.48 trillion, and OCBC NISP get Rp 435.9 billion. Whereas the previous year, profit CIMB Niaga Rp 678.2 billion, BNI Rp 1.22 trillion, and net profit of new OCBC NISP around Rp 316.9 billion.

Bank Niaga President Director Arwin Rasyid said, CIMB net interest income as of the end of 2009 amounted to Rp 6.02 trillion or an increase of 28.9% from the end of 2008. In addition to interest income, commissions and efficiency improvements also contribute to the increase in net profit CIMB Niaga.

Thanks to the efficiency, operational costs CIMB Niaga down from Rp 3.76 trillion in 2008 to Rp 3.71 trillion in 2009. Meanwhile, the ratio of rate of return on assets or return on assets (ROA) rose from 1.1% to 1.2% and return on equity (ROE) grew from 8.1% to 16.2%. The increase is because we can make efficiency, the indicators cost to income ratio improved from 58% to 49%.

So with BNI and OCBC Bank NISP. Bank BNI President Director Gatot M. Suwondo told, thanks to the efficiency, operational costs versus operating income or be BOPO BNI down from 90.2% to 84.9%. Meanwhile, net interest income rose by 12% from Rp 9.91 trillion to Rp 11.13 trillion. In addition, profits are also supported by increased fee-based income of 21% to Rp 4.30 trillion, says Billy.

Meanwhile, President Director of Bank OCBC NISP Surjaudaja Parvati explained, bank net interest income rose 23% to Rp 1.73 trillion at the end of 2009. While fee-based income also increased 6% from Rp 470.8 billion to Rp 497 billion.
This profit increase contrasts with the distribution of credit. As of end 2009, Bank Niaga credit rose 12% or equivalent to Rp 8 trillion of new credit, so credit outstanding to $ 82.8 trillion. Credit BNI grew 8%, or successfully distribute credit Rp 8.85 trillion. As a result of credit outstanding end of 2009, BNI was Rp 120.48 trillion. The OCBC NISP credit growth of only 5% or up from Rp 20.8 trillion to Rp 21.88 trillion.

Come Bank, Insurance Holding Postponed
Plan to form the parent company or an insurance holding company State Owned Enterprises (SOEs) is delayed again. Though initially, the Ministry of target SOEs can realize the formation of a holding by the end of this year 2010.

Deputy for Banking and Financial Services Minister SOEs Parikesit Suprapto, revealed, target the insurance holding company formation was delayed because it follows the same conditions in the banking system. Thus, the formation of a holding, both for banking, insurance, and multifinance, will be postponed until no later than the end of 2011. The reason, until now, the desire is still under review by the government. What is clear, the implementation back about two years, says Parikshit.

The manager of the State's own insurance, do not know much about the planned formation of this holding. Director of PT Jiwasraya Hendrisman Rahim said, until now it had not received official information about the formation of the insurance holding company of the Ministry of SOEs.

Hendrisman asserted, Jiwasraya will follow the decision of the Ministry of SOEs. Moreover, the Ministry of SOEs in fact it's been like a holding company. The children are all state-owned company. If it wants to set up a holding sectoral, that good ones. Everything must be considered, Hendrisman said.

The government does have a strong consideration to form a holding. Parikshit said, with the holding, the government hopes, the competitiveness of national insurance company is getting better. Therefore, companies have similar business into one group.

Plans, insurance companies holding the red plate will be divided into three groups. That group life insurance, general insurance, and reinsurance. Thus, insurance companies in similar sectors would come under the same corporate umbrella.

Government-owned insurance companies include PT Asuransi Indonesia Export (ASEI), PT Asuransi Jasa Indonesia (Jasindi), PT Asuransi Kredit Indonesia (Askrindo), and PT Asuransi Jiwasraya. Until now, the government had yet to determine which companies will be holding parent in general and life insurance.

The formation of this holding is also to anticipate the sole ownership rules and the minimum capital requirements for insurance.