Impending Merger: What are the Total Assets and Net Profits of Nobu Bank and MNC Bank?

News of the merger between PT Bank Nationalnobu Tbk (NOBU) and PT Bank MNC International Tbk (BABP), which had been circulating, has been confirmed. The Financial Services Authority (OJK) revealed that both banks had indeed submitted a merger plan.

OJK Banking Supervisory Executive Head Dian Ediana Rae stated that the merger process is underway, with a dedicated merger team already in place. Both banks are currently taking steps towards realizing the merger.

"I think it's excellent that MNC is merging with Nobu; they have a very strong ecosystem. This will undoubtedly strengthen both MNC and Lippo's businesses, two very powerful conglomerates," she said in an OJK press conference reported by *Katadata* on Monday, February 27, 2023.

One of the merger requirements is meeting the minimum core capital requirement of Rp3 trillion. If this minimum is not met, general banks will be downgraded to Rural Banks (BPR).

Aside from the merger process, what is the financial condition of both banks?

As of November 30, 2022, Bank Nobu recorded total assets of Rp21.3 trillion. In the same period, its total liabilities reached Rp19.5 trillion. Therefore, its equity amounted to Rp1.86 trillion.

Bank Nobu's net profit for the January-November 2022 period reached Rp96.5 billion.

For Bank MNC, total assets reached Rp15.3 trillion. Its liabilities nearly reached Rp13 trillion. From this, its equity was recorded at Rp2.3 trillion.

Bank MNC posted a net profit of Rp57.51 billion in Q3 2022. In its report, Bank MNC stated that this figure surged 897.17% year-on-year (yoy) compared to Rp5.77 billion in the same period the previous year.

This surge in profit was due to increased interest income and decreased interest expense. Rita Montagna, President Director of Bank MNC, also cited the company's credit growth and healthy governance as reasons for her optimism regarding Bank MNC's future growth.

Bank MNC is a bank belonging to MNC Group, a company owned by businessman Hary Tanoesoedibjo. Previously, MNC Group acquired PT Bank ICB Bumiputera Tbk and changed its name to Bank MNC in 2014.

Meanwhile, Bank Nobu, which is under the Lippo family, was originally named PT Bank Alfindo Sejahtera. In 2010, the bank changed its name to PT Bank Nationalnobu.

Below are the total assets, equity, and net profit of Bank MNC and Bank Nobu as published in November 2022:

* Assets
* Bank Nobu: Rp21.3 trillion
* Bank MNC*: Rp15.3 trillion
* Equity
* Nobu: Rp1.86 trillion
* MNC*: Rp2.3 trillion
* Net Profit
* Nobu: Rp96.5 billion
* MNC*: Rp57.5 billion

*) Q3 data (July-September 2022)

(See also: What is the Total Asset of Bank Danamon and Bank Parahyangan After the Merger?)