Woori Bank's Indonesian subsidiary BWS earns higher grade

Bank Woori Saudara (BWS) located in Indonesia / Courtesy of Woori Bank

By Anna J. Park

Woori Bank is gaining momentum in its plans to extend its business portfolio in the Indonesian market, as its Indonesian subsidiary Bank Woori Saudara (BWS) officially acquired a higher grade from the Southeast Asian country's financial watchdog. Korea-headquartered Woori Bank has held a 79.88 percent stake in BWS, following the merger between Bank Saudara and Bank Woori Indonesia in 2014.

According to the bank Sunday, Indonesia's financial watchdog Otoritas Jasa Keuangan (OJK) confirmed BWS' upgrade to Business Activities (BUKU) III level late last week, as BWS raised its core capital requirement to 5.2 trillion rupiah, or about 413 billion won ($373 million), as of the end of 2020. The BUKU III category is the second-highest bank capital classification category, following BUKU IV.

“This is a proud achievement for BWS in the midst of an uncertain pandemic situation, as the bank succeeds at business diversification centering on digital banking, as well as its asset portfolio improvement,” an official from Woori Bank said. “The bank will continue to provide differentiated financial services as it puts customers at its utmost priority.”

Stepping up as a BUKU III-level bank, the lender said it plans to extend its business by strengthening bancassurance businesses ― selling insurance products to bank customers ― and securities prime brokerage services.

BWS currently operates more than 153 branches in Indonesia, providing various services from mobile banking to corporate business services. The bank recorded an annual operating profit of more than $100 million in both 2019 and 2020.