Jakarta, CNBC Indonesia – Recently, the shares of mini banks aka BUKU II banks (business group commercial banks with core capital of Rp 2 trillion to Rp 5 trillion) have become ‘hot’ instruments to collect. Stock prices that shot up quite fast since the beginning of the year became one of the reasons in itself.
The digital bank sentiment, which is predicted to be part of the future of Indonesia’s financial services, is the beginning of the wild movement of mini-bank shares.
A digital bank that is able to offer integration in existing ecosystems, be it conventional ones such as minimarket networks to digital ecosystems such as e-commerce and multifunctional applications also make investors crazy.
Especially with the start of the acquisition of mini banks by start-up and fintechs that want to expand their business reach to offer more inclusive financial services.
This acquisition is busy because mini-banks are also looking for fresh capital, in order to meet the minimum capital requirement required by the Financial Services Authority (OJK), which is IDR 2 trillion this year and IDR 3 trillion next year.
For this reason, a number of mini-banks have issued new shares with Pre-emptive Rights (HMETD) or rights issues or without HMTED or private placements in order to get an injection of new investors. This later became a sentiment that also raised the share price of issuers in this sector which rose significantly.
On the other hand, although the banking industry is one of the largest sectors with a growing number of ‘players’, this condition has not been able to meet the needs of the Indonesian people.
According to a study conducted by the Oxford Business Group, there were still 83.1 million Indonesians who did not have a bank account as of November 2019.
Therefore, the financial inclusion offered by fintech and digital banking could be a big thing that can change the landscape of the financial industry in the future.
Moreover, the government seems to give a positive response with the OJK, which is currently drafting regulations related to commercial banks that will accommodate digital bank regulations.
The government’s enthusiasm is also not without foundation, a World Bank study reveals an increase of 1% in financial inclusion can increase per capita growth by around 0.03%.
Although the issuers of mini-banks offer good promises in the future, of course, the fundamental aspects related to financial performance should not be simply forgotten, because it is possible that stock prices that soared in the first half of this year could change direction quickly in the future.
The CNBC Indonesia Research Team tries to summarize the financial performance of five mini-bang issuers that have submitted their financial statements for the second quarter of 2021.
The five companies are PT Bank Jago Tbk (ARTO), PT Bank Aladin Syariah Tbk (BANK), PT Allo Bank Indonesia Tbk (BBHI), PT Bank Capital Indonesia Tbk (BACA) and PT Bank Victoria International Tbk (BVIC).
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Photo: The financial performance of five issuers of mini-banks in the first semester/Ferry Sandria Financial performance of five issuers of mini-banks in the first semester/Ferry Sandria- – |
During the first half of 2021, three companies recorded profits, while the other two were still experiencing losses.
In terms of revenue, profit and total asset value, Bank Victoria is in first place, while Bank Jago has the largest amount of equity.
Of the five mini-banks, Bank Jago scored the deepest loss, which was the company with the largest market capitalization, while Bank Victoria even became the company with the lowest valuation among these five mini-banks.
Bank Jago’s market capitalization currently reaches Rp 241 trillion, equivalent to three times the combined market capitalization of the other four mini banks.
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