Is the merger of Sharia state banks only boosting Bank Mandiri’s business?

Reporter: Fencing Septiadi | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. In terms of asset value, PT Bank Mandiri Syariah is the largest of the three state sharia subsidiary banks that will undertake a commercial merger, namely PT Bank BRI Syariah Tbk (BRIS) and PT Bank BNI Syariah.

Although there is no complete prospectus on the merger scheme, assuming the size of each entity to be joined, on a proportional basis, Bank Mandiri Syariah’s parent company PT Bank Mandiri Tbk (BMRI) will be able to make the biggest profit. Especially if the bank class resulting from the merger will be consolidated with Bank Mandiri.

On the other hand, BRI Syariah’s parent company, namely PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Negara Indonesia Tbk (BBNI), as the parent company of BNI Syariah, will reduce their assets due to the loss of consolidation of their entities subsidiaries, and will not consolidate the merged bank.

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“It is likely that (the merged bank) will be consolidated into Bank Mandiri, considering that Mandiri Syariah has the largest assets. Meanwhile, BRI Syariah and BNI Syariah are no longer consolidated into their parent company,” said head of research Samuel Sekuritas Suria Dharma to KONTAN, on Tuesday (10/20).

S&P in its investigation last week also stated the same, that this merger action would only boost Bank Mandiri’s performance. Meanwhile, at BRI and BRI, there is practically no impact.

“We estimate that the merger action will have a positive impact on Bank Mandiri’s business, while the impact on the other two banks is relatively non-existent given the small contribution of assets and projected ownership in the merged bank,” wrote S&P.

KONTAN has tried to contact the three directors of the three state banks, unfortunately no one has responded until this news comes out.

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Regarding financial reports up to August 2020, Bank Mandiri Syariah outperforms the other two. Bank Mandiri Syariah’s assets were recorded at Rs 112.12 trillion, with funding of Rs 76.38 trillion and Third Party Funds (DPK) of Rs 99.11 trillion.

Meanwhile, BRI Syariah’s assets amounted to Rs 51.80 trillion with funding of Rs 39.28 trillion and DPK of Rs 44.48 trillion. Then BNI Syariah has assets of Rs 49.97 trillion with funding of Rs 31.25 trillion.