Major Southeast Asian Banks Compete for Panin Bank’s Controlling Shares

From a valuation perspective, Panin Bank is trading at a price-to-book ratio of 0.88, comparable to other banks like CIMB Niaga (0.88) and Permata Bank (0.86), but higher than OCBC NISP (0.78) and Maybank Indonesia (0.56).

ANZ’s decision to sell its stake in Panin Bank is not a new development. The Australian bank has sought to exit its investment since 2013, with valuation challenges being the main obstacle. ANZ originally acquired a 29% stake in Panin Bank in 1999, later increasing it to 39.22%. Under CEO Shayne Elliott, ANZ has shifted its focus toward its domestic market, reducing its exposure in Asia to strengthen its local operations and increase its return on equity.

Panin Bank, established in 1971 by influential entrepreneur Mu’min Ali Gunawan, went public in 1982.

Despite the sale, the Gunawan family, now led by 85-year-old Mu’min Ali Gunawan, is expected to retain a portion of their shares in the bank.
Panin Bank reported an 8.16% decline in net profit for 2023, reaching IDR 3.01 trillion, primarily due to a reduction in net interest income.(Uki Ruknuddin)