Sale of Non-Performing Loans, Muamalat Bank Assets Shrink

Based on the financial report published in June 2018, PT Bank Muamalat Indonesia's assets have shrunk by Rp 6.49 trillion (10.53%), decreasing to Rp 55.2 trillion from the end of last year. Similarly, its equity also fell by Rp 1.57 trillion (28.47%), reaching Rp 3.97 trillion from its December 2017 position.

The financial report shows that Bank Muamalat conducted a cleanup of non-performing assets. This is evident in the decrease of Mubarahah receivables by Rp 2.02 trillion to Rp 25 trillion from Rp 27.02 trillion at the end of last year. The decrease in Bank Muamalat's assets was also triggered by a decrease in Musyarakah profit-sharing financing by Rp 2.73 trillion, reaching Rp 17.13 trillion from the previous Rp 19.86 trillion. As a result, the non-performing financing ratio (NPF) decreased to 1.65% from 4.95%.

A new investor led by Ilham Habibie will enter Bank Muamalat through a rights issue scheme. This consortium is reportedly going to partner with several national entrepreneurs. Previously, PT Minna Padi Investama Tbk expressed interest in increasing capital in Indonesia's first Islamic bank. However, this plan failed because it did not receive approval from the Financial Services Authority (OJK) due to its inability to disclose the names of the owners of the funds for the acquisition.