Trade

Standard Chartered Wants to Release Bank Permata Shares

Standard Chartered opens the opportunity to release its share ownership in PT Bank Permata Tbk (BNLI). Standard Chareted has a 45% stake in Bank Permata with a value of US $ 835 million.

Investors supported the steps of Standard Chartered Chief Executive Bill Winters to realize this strategy.

“There has never been a quick fix,” said Aberdeen Standard Investments Asia Pacific Managing Director Hugh Young who is also the third largest shareholder of StanChart quoted by Reuters on Wednesday (02/27/2019).

Releasing shares of Bank Permata is believed to be able to make revenue grow double digits.

“The combination of cost efficiency and Permata can make revenue grow double digits,” he said.

The company seeks to improve performance in India, South Korea, the United Arab Emirates and Indonesia. The four countries charge up to 21% but only contribute 13% to profit.

StanChart shares have fallen 40% since Winters, former banker of JPMorgan Chase & Co, took over in June 2015. Total returns to shareholders also fell 35%.

Winters paid US $ 7.82 million in 2018, up 27% from the previous year because long-term incentives were given for the first time since he joined the bank.

PermataBank was formed from the merger of 5 banks under the supervision of the Indonesian Bank Restructuring Agency (IBRA), namely PT Bank Bali Tbk, PT Bank Universal Tbk, PT Bank Prima Express, PT Bank Artamedia, and PT Bank Patriot in 2002.

In 2004, Standard Chartered Bank and PT Astra International Tbk took over PermataBank and began a transformation process within the organization. (fig / ang)

Detik.com

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