Jakarta, 26 March 2021 –The Islamic banking market is one of the banking industry sectors that still has potential for further development. According to the Financial Services Authority (“OJK”), total Shariah banking assets grew 13.04% in December 2020 and continue to see growth, despite the Covid-19 pandemic.
This is why the Sharia Business Unit (UUS) of PT Bank Maybank Indonesia, Tbk. (Maybank Indonesia, the Bank) has a vision to increase its share of the Shariah banking market, which the Bank has been promoting since 2014 through its Shariah First strategy.
Head of Syariah Banking at Maybank Indonesia Romy Buchari stated, "We will continue to implement the Shariah First strategy by applying various means to expand market penetration and provide unique solutions for our customers by continuing to develop the UUS Maybank Indonesia business line into a strong force in the Indonesian competitive banking market and one able to contribute to national economic development."
Sharia First strategy focuses on popularizing Islamic banking by introducing Sharia-based financial solutions, namely solutions managed in accordance with the Sharia principles of fairness, ethical behavior and transparency, to customers before offering them conventional banking solutions. Sharia First banking solutions may be accessed by all levels of society, without any religion or belief requirements.
Shariah First strategy has played a strategic role in significantly improving the performance of Maybank Indonesia's Sharia banking. Based on 2020 financial reports, UUS Maybank Indonesia contributed 22.4% to Maybank Indonesia (Bank Only) profit before tax and 21.6% of the Bank only total assets. Even amidst challenging conditions, UUS Maybank Indonesia continued to record healthy growth in total assets to Rp35.3 trillion by December 2020, representing an increase of 8.1% from Rp32.6 trillion in December 2019.
Total customer deposits have also increased, by 7.8% to Rp27.4 trillion, supported by 28.6% growth in Shariah savings. Asset quality has seen slight pressure due to the Pandemic, as shown from the Non-Performing Financing (NPF) rate of 3.2% (gross) in December 2020.
UUS Maybank Indonesia adopts the Leverage Model approach to utilize all the Bank's resources and networks to market Sharia-based financial products. These efforts have contributed to realizing average annual UUS Maybank Indonesia asset growth of 17.1% for the last five years.
To increase market penetration, particularly by marketing and distribution channels, UUS Maybank Indonesia now operates 18 Sharia Branch Offices (KC), including the two recently-opened Sharia KCs in Jambi and in Malang, East Java, in operation since March 15, 2021.
Maybank Indonesia is also completing the conversion of one branch office in Banda Aceh into a Sharia Branch Office, in line with the implementation of Qanun Concerning Sharia Financial Institutions Number 11 of 2018 by the Aceh Provincial Government. The Banda Aceh KC is targeted to become operational on March 30, 2021.
Maybank Indonesia plans to open several other new Sharia Branch Offices by the end of 2021 to make UUS Maybank Indonesia products and services available at over 360 conventional and Sharia branch offices of Maybank in Indonesia, as well as online via the ATM network, Maybank M2U application (for personal customers) and M2E application (for Corporate customers).
Romy added, "Information technology has become an important part of life during this new normal era. This is of particular concern for UUS Maybank Indonesia, as it aims to increase the implementation of digitalization to encourage growth in both the customers and assets of UUS Maybank Indonesia. Today, Sharia-based savings products are available through Maybank M2U digital banking, providing customers with product experience flexibility by offering them the option to access Shariah savings and deposits online."
UUS Maybank Indonesia helped finance the initial procurement of Covid-19 vaccines, alongside PT Bio Farma, through an omnibus facility worth USD 185 million or IDR 2.68 trillion. UUS Maybank Indonesia also provided the Foreign Currency Hedging Islamic Banking (“iB”) facility introduced to the market in early 2020 to financing certain infrastructure projects. Apart from corporate sector activities, UUS Maybank Indonesia also continues to support financing for the SME and Retail sectors.
When the Covid-19 pandemic first hit Indonesia early in 2020, UUS Maybank Indonesia played a part in alleviating the impact of the pandemic by distributing Personal Protective Equipment (PPE) to various hospitals throughout Indonesia, as well as providing food assistance in the form of basic necessity packages to those in need and orphans, from benevolence funds.
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Notes to Editors
Maybank Indonesia is one of the leading banks in Indonesia and is a part of the regional and international network of the Maybank Group. Maybank Indonesia provides a comprehensive range of products and services for individual and corporate customers through Community Financial Services and Global Banking, as well as automotive financing through subsidiaries, WOM Finance for two-wheeled vehicles and Maybank Finance for four-wheeled vehicles. Maybank Indonesia also continues to develop Digital Banking services and capacity through Mobile Banking, Internet Banking, Maybank M2U (mobile banking based internet banking) and various other channels.
As of December 2020, Maybank Indonesia has 361 branches including Syariah branches spread across Indonesia as well as one overseas branch (Mumbai, India), 22 Mobile Cash Cars and 1,428 ATMs including 79 CDMs (Cash Deposit Machine) connected with over 20,000 ATMs incorporated in ATM PRIMA, ATM BERSAMA, ALTO, CIRRUS, and connected to 3,500 Maybank ATMs in Singapore, Malaysia and Brunei. Maybank Indonesia manages customer deposits amounting to Rp115.0 trillion and has total assets valued at Rp173.2 trillion as of December 2020.For more information:
Tommy Hersyaputera
Head, Corporate & Brand Communications
Email: CCommunications@maybank.co.id
Telp: +6221 2922-8888
