Fully Supported by KB Financial Group- South Korea, Bank Bukopin Is Increasingly Recognized by Institutions and World Rating Agency

Thepresidentpost.id - Jakarta, March 28th 2023 – In the midst of global banking turmoil, especially in the United States, full support from major shareholders of a bank such as KB Financial Group (KBFG)-South Korea for PT KB Bukopin, Tbk. is very important.

Since entering as the controlling shareholder in 2020, KBFG has made Bank KB Bukopin increasingly recognized by various institutions and world rating agencies.

The bank listed on the Indonesia Stock Exchange with the stock code BBKP has successfully won the highest banking rating in Indonesia AAA(idn) from Fitch Ratings and idAAA from Pefindo with a stable outlook, and is the only bank in Indonesia trusted to receive funding for the issuance of social bonds from International Finance Corporation (IFC), member of the World Bank.

Bank KB Bukopin is trusted by IFC to obtain a foreign loan worth US$300 million or IDR4.41 trillion, which includes the issuance of social bonds to fund the handling of the socio- economic impact of the pandemic and MSMEs financing, affordable housing, health care, education, and infrastructure.

“Trust is the most important basis for the existence of a bank. With strong capital support and clear business vision guidelines from KB Financial Group through KB Kookmin Bank, gradually, sustainably and convincingly KB Bukopin will continue to gain greater trust," said Deputy President Director Robby Mondong.

Very strong capital support from KB Financial Group as a controlling shareholder through Kookmin Bank, as well as a reliable management system and strong connections with Korean corporate networks in Indonesia have made Bank KB Bukopin successful in gaining very strong public trust, along with its success in increasing its performance gradually and continuously.

The high credibility of Bank KB Bukopin is reflected in the highest rating given by Fitch Ratings Indonesia and Pefindo, which shows the view of the two rating agencies that the bonds issued by Bank KB Bukopin have the lowest risk of default compared to all other issuers or bonds in Indonesia.

The two rating agencies emphasized that the ratings reflected expectations of support from KB Financial Group through Kookmin Bank as the holding bank.

KB Financial Group is the largest financial business group in South Korea with total assets of USD 560.1 billion and a customer base that reaches 70% of South Korea's population. Having the highest credit rating among South Korean banks, KB Financial Group is also known as the most profitable, solid and stable financial business entity.

The bank, which is listed on the Indonesia Stock Exchange with the BBKP stock code, has managed to rise up, turn things around, and gain stronger trust since being controlled by KB Kookmin Bank from 2020. KB Financial Group through KB Kookmin Bank, has injected USD 682 million, or the equivalent Rp 10.5 trillion to KB Bukopin, and will again inject funds through a rights issue which will be held in the second quarter of this year.

The plan to increase KB Bukopin Bank's capital through a rights issue was approved at the Extraordinary General Meeting of Shareholders (EGMS) on 30 November 2022.

The revival of KB Bukopin Bank's performance was achieved by improving the loan processing, such as using the decent system, using the scoring tool from KB Kookmin, and conducts regular human resource training. Unlike before, since the entry of KB Kookmin, the process of credit disburshmen to KB Bukopin has followed the four eyes principle, where the loan approval carried out through credit committee whose member are department/division that independent to the recommending branch/department.

Credit committee forum established in head office and regional offices. For further improvement, on 22 February 2023, Bank KB Bukopin introduced the SHINE Project as the new name for the Next Generation Banking System (NGBS) to the public.

The SHINE Project is an information technology and business system transformation project for Bank KB Bukopin that provides various services focused on customer satisfaction, updating systems to better support business needs, and aggressively meeting market demands.

It is hoped that the new name SHINE Project and the tagline Change Everything will provide greater enthusiasm for all parties in the success of Bank KB Bukopin's business and information technology system transformation project.