JAKARTA – The sharia business unit (UUS) of PT Bank CIMB Niaga Syariah Tbk (BNGA) reported a 9.14% year-on-year (yoy) increase in financing for 2024, reaching IDR 60.29 trillion as of December.

Profit-sharing financing dominated CIMB Niaga Syariah’s financing portfolio, amounting to IDR 51.94 trillion, followed by receivables-based financing at IDR 6.98 trillion and lease financing at IDR 1.37 trillion.

However, according to BNGA's 2024 Financial Report released today (20/2), income after profit-sharing declined by 2.77% yoy to IDR 2.18 trillion in 2024.

Fortunately, operational expenses dropped significantly in 2024, from IDR 327.13 billion to IDR 53.67 billion, boosting operational profit by 11.06% yoy to IDR 2.12 trillion.

At the bottom line, Bank CIMB Niaga Syariah recorded a 11% yoy rise in net profit to IDR 2.12 trillion in 2024.

Additionally, the UUS saw its assets grow by 7.58% yoy, from IDR 62.75 trillion to IDR 67.50 trillion by the end of December 2024.

This growth further underscores the necessity for BNGA to proceed with a spin-off of its UUS, in accordance with the OJK regulation requiring UUS to spin off within two years after reaching IDR 50 trillion in assets or 50% of the parent company’s total assets.

In January, Dian Ediana Rae, Executive Head of Banking Supervision at OJK, mentioned the potential for acquisitions and mergers of several UUS to form larger Sharia Commercial Banks (BUS).

Following PT Bank Tabungan Negara (Persero) Tbk (BBTN)’s announcement of its plan to acquire PT Bank Victoria Syariah, the sharia subsidiary of PT Bank Victoria International Tbk (BVIC), in January, the market has begun anticipating the possibility of BNGA acquiring another bank’s UUS to smoothen the spin-off process of CIMB Niaga Syariah. (ZH)