Abu Dhabi's largest Islamic bank is in talks to buy a minority stake valued at around $1.1 billion in Indonesia's top Islamic lender, PT Bank Syariah Indonesia Tbk (IDX:BRIS), two sources told Reuters, with an aim to tap into a fast-growing market in Southeast Asia. The potential acquisition of a 15% stake in Bank Syariah Indonesia (BSI) from PT Bank Rakyat Indonesia (Persero) Tbk (IDX:BBRI) (BRI) is one of the options that Abu Dhabi Islamic Bank PJSC (ADX:ADIB) (ADIB) is considering, said the two sources. The sources, who have knowledge of the matter, declined to be named as they were not authorised to speak to the media.

ADIB said after the publication of the Reuters report that it "strongly denies" being in any negotiations to acquire a stake in BSI. Before publication, it had declined to comment. ADIB shares ended down 5.7% on April 17, 2024 after the report.

BRI did not respond to a Reuters request for comment. "What we can say is that the information above is in the domain of our shareholders," state-owned BSI's Corporate Secretary Gunawan Hartoyo said in a statement when asked whether ADIB was in discussions to explore the possibility of investing in BSI or buying BRI's 15% stake. Talks and deliberations are in the early stages and there is no guarantee a deal will be finalised, the sources said.