Indonesia’s oldest Islamic bank shifting focus to retail segment, still waiting on capital injection
JAKARTA – Indonesia’s oldest Islamic bank will shift its focus to the retail segment and away from corporate customers once it secures a capital injection, Achmad K. Permana, Bank Muamalat president director told Salaam Gateway.
Corporate customers currently make up around 65% of Bank Muamalat’s financing portfolio but this segment has not been performing well, with several debtors facing difficulties repaying loans, including mid-sized corporates such as Delta Merlin Dunia Textile and Hastuka Sarana Karya.
The bank’s gross non-performing financing (NPF) breached the 5% ceiling allowed by the banking regulator when it touched 5.6% at the end of September, from 2.9% for the same period in 2018. At the same time, its net profit dropped from 111.7 billion rupiah in September 2018 to 7.3 billion rupiah in September 2019.
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