Thai Lender Emerges as Contender for Bank Permata

Indonesia, forecast to grow at 5 percent in 2020, offers growth potential for Bangkok Bank, which is looking for a new market in the region.

Bangkok Bank is said to have emerged as the frontrunner for Bank Permata, Standard Chartered’s Indonesia bank, citing people familiar with the matter.

The bank is said to be competing with Japan’s Sumitomo Mitsui Financial Group in the race for a 90-percent stake in Bank Permata in a deal worth $2.3 billion, and a winner could emerge as soon as next week.

Bank Permata’s current major shareholders include Standard Chartered (45 percent) and PT Astra International (45 percent).

In February, Standard Chartered signaled that its Permata investment is no longer considered core. Permata Bank reported net income of 711.4 billion rupiah ($50.7 million) for the first half of 2019, a significant jump from 288.8 billion rupiah a year before.

Singapore banks DBS and OCBC are reportedly interested in the deal, though Indonesia’s Financial Services Authority has called SMFG the «most serious bidder.