PT Bank Central Asia Tbk First Half 2019 - Results Positioning for Better Growth

Sustainable profitability with a net profit growth of 12.6% to Rp12.9 trillion

Jakarta, 24 July 2019 – PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries reported consolidated financial results for the first half of 2019. The Bank recorded an increase in net profit of 12.6% to Rp12.9 trillion compared to previous year’s Rp11.4 trillion on the back of strong operating performance. The Bank’s operating income as a total of net interest income and non- interest income grew 16.1% to Rp34.2 trillion in first half of 2019 from Rp29.5 trillion in the  previous year. Net interest income increased 13.1% YoY to Rp24.6 trillion while non-interest income grew 24.5% YoY to Rp9.6 trillion in first half of 2019. 

BCA’s President Director, Mr. Jahja Setiaatmadja, noted that “BCA saw a recovery of investment loans since 2018 and continued in the first half of 2019. This was an encouraging indicator for the business environment and economic prospect over the longer term. BCA recorded positive growth in various loan segments”. 

In the first half of 2019 the loan portfolio increased 11.5% YoY to Rp565.2 trillion. Corporate loans grew 14.6% YoY to Rp219.1 trillion and Commercial & SME loans increased 12.5% YoY to Rp189.2 trillion. Meanwhile, consumer loans increased 6.4% YoY to Rp152.0 trillion. Within the consumer segment, mortgages grew 11.2% YoY to Rp90.7 trillion. Vehicle loans decreased 1.5% YoY to Rp48.2 trillion, driven by a decrease in two-wheeler financing. Meanwhile, credit card outstanding balances grew 6.0% YoY to Rp13.1 trillion in June 2019. In the same period, Sharia financing increased 4.3% YoY to Rp4.9 trillion. 

On the funding side, BCA recorded Current Accounts and Savings Accounts (CASA) growth of 5.9% YoY to Rp510.4 trillion, alongside with a strong increase in number of transactions particularly in e-channels. CASA remained as BCA’s core funding and accounted for 75.7% of total third party funds. In the meantime, time deposits increased 18.1% YoY to Rp163.5 trillion. Total third party funds stood at Rp673.9 trillion, up 8.6% YoY. 

BCA continued to deliver solid financial metrics. The Capital Adequacy Ratio (CAR) and the Loan to Deposit Ratio (LDR) were recorded at healthy levels of 23.6% and 79.0% respectively.

The Non-Performing Loans (NPL) ratio came in at a tolerable level of 1.4%. The ratio of total allowance to NPL (loan loss coverage) stood at an adequate level of 183.7%. Return on Assets (ROA) came in at 3.7%

“In response to the dynamic business environment, BCA will maintain prudent banking approach, and on the other hand, BCA will continue to innovate and adapt alongside with the changes of customer behavior and growing e-commerce. BCA saw that its various digital initiatives continued to make inroads and strengthen our transaction banking franchise. We are pleased to see growing number of customers, number of transaction and transaction value” said Mr Jahja Setiaatmadja. 

BCA’s First Half 2019 Results – Bank Central Asia’s (BCA) President Commissioner DE Setijoso (center) and BCA’s President Director Jahja Setiaatmadja (second from the left) were seen announcing BCA’s First Half 2019 Results with BCA’s Director Suwignyo Budiman (second from the right), BCA’s Director Subur Tan (right), and BCA’s Director Vera Eve Lim (left) in Jakarta, Wednesday (24/07). In the first half of 2019, the bank’s loan portfolio increased 11.5% YoY to Rp565.2 trillion with an increase in net profit of 12.6% to Rp12.9 trillion. BCA also recorded a 5.9% YoY growth in Current Accounts and Savings Accounts (CASA) going up to Rp510.4 trillion alongside with a significant increase in transactions volume particularly via e-channels. CASA remained as BCA’s core funding and accounted for 75.7% of the total third party funds. Further, time deposits saw an 18.1% YoY growth up to Rp163.5 trillion, while third party funds saw an 8.6% YoY growth, reaching Rp673.9 trillion.