Bank - There is talk of being acquired by Muhammadiyah

Bank - There is talk of being acquired by Muhammadiyah It is reported that PT Bank KB Bukopin Syariah, or KB Bank Syariah, is the bank targeted by Muhammadiyah. Regarding this news, the parent company of KB Bank Syariah, namely KB Bank, also opened its voice. Deputy Main Director of KB Bank, Robby Mondong, said that his party has not received official information regarding this matter. Furthermore, he said that if the information was officially obtained, his party would certainly convey it in accordance with applicable information disclosure regulations. "In general, we are always open to every existing opportunity for cooperation and business collaboration," said Robby. Robby added that so far, KB Bank Syariah has had an important role for KB Bank. Specifically, in providing access to sharia banking services to KB Bank customers in general, Robby detailed that KB Bank Syariah had achieved positive performance growth in the first quarter of 2024 by posting a net profit of IDR7.3 bn. This achievement doubled by 132% from the same period the previous year. "In terms of assets, KB Bank Syariah is consolidated at around 10% of KB Bank's total assets," he said. (Source : Kontan) Comment : Despite it still being in the early stages, we like Muhammadiyah and KB Bank Syariah early discussion on the acquisition plan. What’s more, we also expect there will be more effort from the industry players in various corporate actions, especially M&A, as it will strengthen the sector's growth posture and profile. With the massive untapped potential market, growth in syariah banking is very promising. Maintain our OW stance for the bank.