Standard Chartered completes sale of equity interest in Permata

Maria Nikolova

Standard Chartered Bank sold its shareholding in Permata for cash consideration of IDR17 trillion (US$1.07 billion).

Standard Chartered PLC (LON:STAN) today announces the completion of the sale of its 44.56% equity interest in PT Bank Permata Tbk to Bangkok Bank Public Company Limited.

Standard Chartered Bank (SCB) sold its shareholding in Permata on May 20, 2020 for cash consideration of IDR17 trillion (US$1.07 billion), representing a premium of US$0.3 billion over the Group’s carrying value.

The finalization of the deal represents significant further progress on Standard Chartered’s strategic priorities. The sale of Permata will allow the Group to focus exclusively on optimising the performance of its wholly-owned branch in Indonesia, which remains a large and strategically important market for the Group.

In February 2019, the Group announced that its strategic priorities in Indonesia were to resolve the non-core status of Permata, to continue to drive higher quality income from multi-national businesses and to test disruptive retail digital platforms. Higher Corporate & Institutional Banking income in the first quarter of 2020 led to profits in Indonesia trebling year-on-year and in March the branch launched its “Banking as a Service” solution, nexus, to offer financial services through e-commerce platforms.

Completion of the transaction will result in an increase in Standard Chartered’s Common Equity Tier 1 capital ratio of around 40 basis points, based on its financial results for the period ended 31 March 2020. This is attributable to a reduction in risk-weighted assets of around US$9.1 billion and the deconsolidation of US$0.5 billion minority interest equity (net of regulatory adjustments including goodwill).

Read this next

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”