(11 April 2016 – Indonesia) Bank Mandiri, Indonesia’s state-owned and largest lender by assets, has indicated that it will strengthen offshore business units with a focus on China and Singapore this year.
The bank projects overseas business assets to grow between 12 to 13 percent from the current US$3 billion (A$3.97 billion) to between US$3.3 billion and US$3.5 billion this year.
“I believe that it’s got great potential. We will continue to bolster our global market related activities, such as cross currency and bond distribution, in these two countries,” director of treasure and markets Pahala Mansury said.
He added that the bank is waiting for Singaporean authorities to approve its application for a capital market license.
Expected to be granted in June, the license would allow Bank Mandiri to develop its Mandiri Sekuritas branch in Singapore into a subsidiary. “We will then inject about US$2.5 million to US$5 million in the next 3 to 4 years to support activities in the Singapore branch,” he added.
Meanwhile, the bank’s Chinese operations are expected to get a boost from Shanghai office’s newly secured license to engage in renmimbi transactions.
With its stronger presence, Bank Mandiri targets loan disbursement in China to grow 44 percent, and in Singapore by 25 percent.
Although it’s offshore operations contributed just 3 percent of total revenue, the bank expects to achieve higher growth there than the domestic operations as a result of “reduced presence” from international banks.
Bank Mandiri plans to focus on the Southeast Asian region for future expansion, however no concrete plans are yet in motion.