Top 1000 World Banks – Indonesia’s banks creep up the ranking
Indonesia’s lenders have had a strong showing in this year’s Top 1000 ranking. Kimberley Long reports on how the country’s domestic banks are pushing forward.
Indonesia has revealed a strong year of growth in 2020’s world banks ranking, with its top four banks all posting close to 20% increases in Tier 1 capital over the course of 2019.
Bank Rakyat Indonesia (BRI) is the highest placed Indonesian bank, coming in 112th overall with $14.2bn in Tier 1 capital. This significant increase on 2019’s rank of 128th is thanks to a 19.2% increase in Tier 1. The rise was enough to push Bank Mandiri down to second place in the country ranking, despite its own jump up the global ranking from 122nd place to 113th, with an 18.25% increase in Tier 1 capital.
Bank Central Asia (BCA), meanwhile, comes slightly further down the global table at 129th but still registers a 19.05% increase in Tier 1 capital. This is only enough for BCA to hold on to third place in the country ranking; however, it places fourth in the Asia-Pacific (excluding China and Japan) return on assets ranking, with 3.11%.
Bank Negara Indonesia (BNI) and Bank of Tokyo Mitsubishi Indonesia switch places in the country ranking, with BNI moving up to fourth place from fifth, as BNI’s 19.12% increase in Tier 1 capital pushes it ahead of Bank of Tokyo Mitsubishi Indonesia’s 5.22% increase. However, as a foreign-owned subsidiary (FOS), Bank of Tokyo Mitsubishi Indonesia does not appear in the Top 1000.
The only other domestically-owned bank to make it into Indonesia’s top 10 this year is Panin Bank, which ranks 308th globally with a 14.04% increase in Tier 1 capital, although it slips a place in the country ranking to eighth, from seventh last year.
Out of the top five domestically-owned lenders, Panin Bank comes in second place in the best-performing banks table, coming first in both soundness and leverage. However, in the growth category, it came in last among its peers.
BCA takes the accolade for the overall best-performing bank in Indonesia, well ahead of Panin Bank, with an overall performance score of 7.29. The lender excelled in growth, profitability, operational efficiency and return on risk, topping the table in these metrics.
The country’s two largest banks, BRI and Bank Mandiri, place fourth and third, respectively, in the best-performing table. BRI topped its peers in liquidity and came second in return on risk; however, it was bottom of the table for asset quality, soundness and leverage. Bank Mandiri, on the other hand, topped the table in asset quality but came last in operational efficiency.
Indonesia sees 23 banks make the global ranking in 2020, welcoming Bank Bukopin back in 975th place. Bank Bukopin is the lowest ranking Indonesian bank this year, despite recording a 16.85% rise in Tier 1 capital.
