Bank Mandiri choose to purchase banks abroad

04 September 2019 08:20

JAKARTA. President Director of PT Bank Mandiri Tbk, Kartika Wirjoatmodjo, said that the company is still in the process of purchasing banks abroad, including in Philippines and Vietnam.

There are several considerations that made Tiko, Kartika's nickname, decide to target banks abroad. First, to expand the company's business in the Asian region. Second, banks in Indonesia are too expensive.

According to her, some banks that had become the target in Indonesia are expensive. The valuation could even reach 3 times the price to book value (PBV).

"We expect valuations to adjust. Because valuations are high, we haven't (bought banks in the country). Our expectation is, with the current condition, it will be 1.4-1.5 times of the book value," Kartika said when met in Jakarta on Monday (2/9) night.

About the plan of overseas expansion, Tiko said that her party had not found the bank that met all the criteria. Previously, Bank Mandiri was reportedly interested in buying most of the shares of PT Bank Permata Tbk. However, the plan was stopped due to high prices. (AM/AR)

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