QNB Buys Majority Stake In Indonesia's Bank Kesawan

Vanessa Doctor

15 February 2011

Qatar National Bank has completed the acquisition of a majority holding in Indonesia's Bank Kesawan after receiving regulatory approval in December 2010.

The acquisition is in line with The QNB Group's strategy to expand in strategic markets with significant potential, the company said in a statement. Indonesia is one of the largest economies in South East Asia and is considered as an energy exporting nation. Qatar and Indonesia have been fostering strong economic ties through the past years.

"The alliance with QNB will have a positive impact on Bank Kesawan's overall business plans with the increase in share cpaital, enhancing the bank's financial position and allowing for the expansion of business activities," Erwin Aksa, president director of Bosowa Corporation, the partner shareholder of Bank Kesawan, said.

At present, Bank Kesawan operates a network of 36 branches and sub branches throughout the country, and has total assets of 3.2 trillion Indonesian Rp ($356 million). As of 2010, financial results for the bank reflected a 35 per cent increase in net profit to $1.6 billion, making it the second most profitable bank in the region in the said year.