Reporter: Nina Dwiantika | Editor: Rizki Caturini
JAKARTA. Cathay Life Insurance Co Ltd, a subsidiary of Cathay Financial Holding Co Ltd officially became the controlling shareholder in Bank Mayapada International. The general meeting of shareholders (RUPS) of Bank Mayapada on Friday, 13 January 2017 approved the change of shareholders composition in the bank. "Cathay Life Insurance Co Ltd has held 40% of the shares," said Rudy Mulyono, Director of Compliance of Bank Mayapada International.
Now, the JPMCB Cathay Life Insurance Co. Ltd becomes Bank Mayapada International’s majority shareholder, while PT Mayapada Karunia has 26.42% of the shares. The change in shareholders composition will strengthen the bank’s capital.
Rudy said that the bank is considering raising capitals by issuing rights with pre-emptive rights. Aside of issuing new shares, Bank Mayapada wants to issue bonds. "We are planning to obtain additional capitals as much as Rp 2 trillion,” he said, Friday (13/1)
Rudy explained, the additional Rp 1 trillion capitals may be derived from rights issue, while the other Rp 1 trillion will be derived from the bonds issuance. The shares and bonds issuances will be realized in the first half or the second half of this year, depending on macro-economic conditions and capital markets.
Those activities may increase Bank Mayapada capitals to Rp 9.3 trillion as per this year. At the end of 2016, the bank had accumulated as much as Rp 7.3 trillion capitals, consist of Rp 6.2 trillion core capitals and Rp 1.1 trillion supplementary capitals.
Meanwhile, the capital adequacy ratio (CAR) of the bank stood at the level of 14.5% by the end of 2016. Additional capitals of Rp 2 trillion will increase the CAR to 15%.
Rudy said, the additional capitals will be allocated to support credit growth. The bank, which is owned by Tahir, is targeting to book a 20% credit growth to Rp 56.4 trillion by the end of 2017. In 2016, Bank Mayapada’s credit allocation amounted to Rp 47 trillion. “The credits will mainly be allocated to corporate, consumer, and middle enterprise sectors,” Rudy said.
Meanwhile, the third party funds of the bank will grow by 20% to Rp 61.2 trillion by the end of 2017. According to Rudy, the company will enlarge the portion of the cheap funds to reduce the costs of funds.
Based on those estimations, the bank is optimistic to book a 40% net profits in the next year. Over the past year, earnings before taxes Mayapada reached Rp 1.2 trillion.
To achieve these targets, Rudy said, the bank will rely not only on interest incomes, but also on commission incomes, which are potentially to grow by 2% -3% this year.