How is Standard Chartered's Asset Performance in Indonesia?

PT Bank Permata Tbk reported a loss of Rp 6.5 trillion in 2016, compared to a profit of Rp 250 billion in the previous year. The increase in provisions for non-performing loans resulted in the bank, owned by PT Astra Internasional Tbk and Standard Chartered (Stanchart), recording its largest loss ever. Meanwhile, Standard Chartered Indonesia itself recorded a profit of Rp 268 billion in 2016, a surge of over 1,000 percent compared to the previous year's profit of only Rp 19 billion.

Bank Permata's financial statements as of December 2016 showed assets of Rp 165.24 trillion and a market capitalization of Rp 12.4 trillion. Standard Chartered Indonesia's assets totaled Rp 64.7 trillion. Bank Permata's loan portfolio reached Rp 94.5 trillion, while Stanchart's reached Rp 25.29 trillion.

Previously, Stanchart's Chief Executive Officer, Bill Winters, revealed options regarding its Indonesian banking assets. The first option was to sell one asset and reinvest in another. The second was to increase its stake in Bank Permata, becoming the controlling shareholder and subsequently merging it with Standard Chartered Indonesia. As is known, in addition to being a shareholder in Standard Chartered Indonesia, the British bank also holds a 44.56% stake in Bank Permata.