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BBYB won't consolidate with other banks to become a BUKU II bank

12 November 2019 15:28

JAKARTA. PT Bank Yudha Bhakti Tbk. (BBYB) will increase its core capital so that it can be a Commercial Bank Based on Business Activities (BUKU) II bank. With this plan, BBYB closed the opportunity to consolidate with other banks, despite the recommendation of the Financial Services Authority (OJK).

Corporate Secretary of BBYB, Januar Arifin, said that the company plans to become a BUKU II bank by early 2020. To realize this plan, BBYB will increase core capital, which is now at the level of Rp 904.53 billion.

"BBYB will continuously increase its capital, by not collaborating or consolidating with other banks, and it is expected that in early 2020 we can be a BUKU II bank," Januar said as quoted by Bisnis on Tuesday (12/11).

Januar's statement is a response to the views of the Financial Services Authority (OJK) about the importance of collaboration and consolidation between banks to improve efficiency. Nevertheless, BBYB acknowledged the importance of these two things done in order to strengthen capital.

As of September 2019, BBYB's profit fell by 77.01% (YoY) to Rp 12.68 billion. The ratio of its operating expenses to operating income (BOPO) rose from 83.61% last year to 98.02%. (AM/AR)

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