Bank Danamon Indonesia to Complete Acquisition of Standard Chartered Bank Indonesia's Consumer Business Portfolio

 

PT Bank Danamon Indonesia Tbk. (BDMN) has announced that the acquisition process of Standard Chartered Bank Indonesia's (SCBI) consumer business portfolio will be completed this week.

Tresia Sarumpaet, Head of Unsecured Business at BDMN, stated that the value of the assets being acquired amounts to more than Rp 1 trillion. "The process itself will take place over the weekend. So, after this weekend, Standard Chartered's credit card, mortgage, and personal loan (KTA) customers will be transferred to Danamon. Starting from the end of this week," she said at the Bank Danamon Tower on Tuesday, December 5, 2023.

According to Tresia, this acquisition process is one of Bank Danamon's strategies to develop its retail business, in line with the bank's risk appetite.

"We want to develop loan businesses that are in line with the segments that Bank Danamon wants to target," she explained.

As known, SCBI signed an agreement with Bank Danamon to transfer its conventional credit card, personal loan (CCPL), mortgage, and auto loan portfolios on April 17, 2023.

SCBI's official statement mentioned that this transfer is in line with Standard Chartered Group's five priority strategies set in 2021 to achieve efficiency and reinvest in business growth.

"This transfer is part of the Standard Chartered Group's strategy renewal in 2021. This step allows us to focus on providing innovative Wealth Management and Deposit products to Priority Banking customers, accelerate our digitalization agenda to serve mass retail customers, and continue to develop our Corporate, Commercial, and Institutional Banking business in Indonesia," said Andrew Chia, Cluster Chief Executive Officer, Indonesia and ASEAN Markets (Australia, Brunei, and the Philippines), Standard Chartered, in an official statement received on Monday, April 17, 2023.

He assessed that Danamon has a strong track record in Indonesia and shares the same ambition as SCBI to continue developing the transferred portfolio. Thus, SCBI believes that Danamon is well-positioned to meet the lending needs of customers.

Furthermore, Standard Chartered's corporate, commercial, and institutional banking (CCIB) business is not affected by the transfer and will continue to operate, utilizing the bank's international network to acquire and serve clients in Indonesia and worldwide.