/2017/04/27/1851696637p.jpg)
CORPORATE ACTION - JAKARTA. PT Bank Mandiri Tbk (BMRI), a leading Indonesian bank, is considering a corporate action of share buyback or buyback. This option has emerged as the bank, symbolized by a golden ribbon, has experienced a correction in its share price over the past week.
According to RTI data, BMRI's share price closed at IDR 6,150 per share at the end of last week's trading. This means that BMRI's shares have corrected by almost 11.51% over the past week.
Laurensius Teiseran, Head of Investor Relations at Bank Mandiri, revealed that there are currently discussions about the option to conduct a buyback of shares. However, this has not yet become a final decision.
"As of now, there are no plans," said Lauren during the Indonesia Investment Education webinar on Saturday (4/5).
He described that internal discussions related to this buyback action are already on the table. However, he did not want to promise whether the bank, symbolized by a golden ribbon, will indeed carry out a buyback.
"Bank Mandiri is conservative and we don't want to make promises that might not happen, we prefer to stay silent for now," said Lauren.
On the other hand, he also added that they are currently aiming to chase the market capitalization owned by BMRI. Currently, Bank Mandiri still has a market capitalization of IDR 574 trillion, far behind two other banks, BRI and BCA.
Lauren said that although the market capitalization owned by Bank Mandiri is not yet superior, it is at least approaching. He saw that the market capitalization gap of BMRI was almost 60% behind, but now it can reach below 20%.
"We must admit that they are great banks and we are happy to have healthy competition," he said.
Furthermore, Lauren revealed that BMRI's focus is not only on approaching market capitalization with domestic banking. Instead, they hope to approach market capitalization in the global banking industry.
"Whatever the bank is abroad, for example in Singapore, it is in front of us and we are chasing it. When? The sooner the better," he concluded.
Previously, PT Bank Rakyat Indonesia Tbk (BBRI) had decided to conduct a buyback of the company's shares. The plan for this action was announced after the correction of its share price following the publication of the First Quarter 2024 Financial Report,
BRI's President Director Sunarso revealed that this step was taken to show confidence that the company's condition is better than what the market perceives.
Although the share price has fallen, BBRI recorded positive profit growth until the first quarter of 2024, as well as increased credit distribution, especially for the MSME segment.
