Monday, 16 September 2019 | 15:22 WIB

BCA Syariah Set to Merge with Bank Royal

BCA Syariah Set to Merge with Bank Royal (dakta)

JAKARTA, NETRALNEWS.COM -- PT Bank Central Asia Tbk (IDX:BBCA), also known as BCA, has revealed that it would merge the company's subsidiary, BCA Syariah, with Bank Royal. The total assets of sharia bank that will form from the merger is estimated to reach around IDR 1.3 trillion.

BCA President Director Jahja Setiaatmadja targets the merger process of Bank Royal and BCA Syariah to be completed by 2020.

Bank Royal currently has assets of around IDR 400 billion to IDR 500 billion, while BCA Syariah collects assets of IDR 800 billion.

"Before the merger, we waited for the Royal Bank to stabilize first, I don't think it could be this year," Jahja said.

The merger plan to form a sharia bank is the latest change because previously the largest private bank in Indonesia wanted to acquire Bank Royal and make it a bank focused on digital banking.

However, BCA feels that it is able to accommodate digital banking services or must buy other banking entities, or establish new subsidiaries. "We can make digital without removing the old (conventional)," he said.

This way, digital banking services will continue to use the BCA holding company. Jahja claims BCA's digital banking products such as "One Click" and "QR Code" have already garnered a significant number of customers.

If the planned merger of BCA Syariah and Royal is realized, then the bank formed will become a Commercial Bank Business Activity II (BUKU II) or a core capital bank of IDR 1 trillion - IDR 5 trillion.

Jahja said he had no plans to make the Islamic bank an open company on the stock market.