SNL Financial Reveals that Indonesian Banks Trump Regional Peers in Profitability

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The latest analysis from SNL Financial explores the state of the Indonesian banking sector and reviews Shariah loans by Indonesian and Malaysian banks.

Top Indonesian Banks By Assets

Top Indonesian Banks By Assets

From Jan. 1, 2013, through April 1, 2015, the five largest Indonesian banks generated total returns ranging from negative 28% to 109%, compared to a 16% gain in the SNL Asia-Pacific Bank Index over the same period.

Announced today, SNL Financial has released a new report investigating the state of the Indonesian banking sector. Using the latest financial data, the report contains a ranking of the top 15 Indonesian banks by assets, an economic and industry overview, risk profile of the sector, Islamic banking data, branch network information, M&A, regulation and a summary of common stock offerings.

Highlights:

  • From Jan. 1, 2013, through April 1, 2015, the five largest Indonesian banks generated total returns ranging from negative 28% to 109%, compared to a 16% gain in the SNL Asia-Pacific Bank Index over the same period.
  • Aggregate credit extended by Indonesian banks grew by 11.65% to 3.742 quadrillion rupiah in 2014, while deposits grew by 12.35% to 4.173 quadrillion rupiah.
  • Indonesia’s largest bank, PT Bank Mandiri (Persero) Tbk, reported 855.039 trillion Indonesian rupiah (US$68.85 billion) in assets at the end of 2014. PT Bank Rakyat Indonesia (Persero) Tbk was the country’s second-largest bank with 801.955 trillion rupiah in assets.
  • According to Bank Indonesia, the country’s central bank, Indonesia is home to the world’s largest retail Islamic banking market, with 17.3 million customers, 2,990 bank offices, 1,267 Shariah-compliant products and 43,000 employees as of 2013.
  • Among Indonesian banks, Bank Mandiri operates the largest domestic branch network with 2,238 depository outlets, according to SNL data.
  • Five-year credit default swaps on five-year Indonesian sovereign bonds traded at 153.25 basis points as of April 2, 2015, down from the mid-2013 peak of 295.22 basis points.
  • There have been eight M&A deals targeting Indonesian banks since the beginning of 2014, including two announced in the first quarter of 2015. The most recent one is Sumitomo Corp.’s Feb. 18 acquisition of a 17.5% stake in PT Bank Tabungan Pensiunan Nasional Tbk, worth $463.12 million.

Notes: SNL Financial is publishing a number of similar analytical pieces for other key economies across the globe. To request data on other regions, please email pressrequests(at)snl(dot)com. Please do not reproduce this report in its entirety.

About SNL Financial
SNL Financial is a leading provider of financial information on more than 6,500 public companies and 50,000 private companies in business sectors critical to the global economy: Banking, Financial Services, Insurance, Real Estate, Energy, Metals & Mining, and Media & Communications. The SNL information service integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock.

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Kelly Chan
@SNLAsiaPacific
since: 01/2013
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