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

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”