PT Bank Central Asia Tbk Third Quarter 2021 Results - Solid Performance to Support Economic Recovery

Jakarta, 21 October 2021 – PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries reported solid financial performance for the first nine months of 2021. Loan disbursement grew stronger at 13.8% YoY in line with BCA’s commitment to support economic recovery. On the funding side, current accounts and savings accounts (CASA) achieved year-on-year growth of 21.0% in September 2021. Supported by this positive credit performance and strong CASA growth, BCA recorded a net profit of Rp23.2 trillion in the first nine months of 2021, an increase of 15.8% YoY. 

“We appreciate the Government's efforts to handle the spread of covid-19 in Indonesia, among others by accelerating the vaccination program, allowing business activities started to rise along with increased mobility. The extended period of tax relaxation policies in the property and automotive sector helped the public's purchasing power. Along with the rollout of the Government’s stimulus, BCA again held BCA Online Mortgage Expo from September 9 to October 10, after the previous expo held in July 2021. BCA also hosted the BCA Vehicle Financing Virtual Mall, presented special offers for the retail segment. These events, which were held throughout the third quarter of the year, demonstrated our optimism in supporting credit distribution and national economic recovery despite all the challenges,” said Jahja Setiaatmadja, President Director of PT Bank Central Asia Tbk. 

New disbursed loans outweighed loan repayment, allowing total outstanding loans grew by 4.1% to Rp605.9 trillion in September 2021. Placement in corporate bonds also grew positive, by 16.1% YoY. In total, BCA’s combined portfolio of loans and corporate bonds increased 4.5% YoY to Rp630.2 trillion. The loan growth was supported by improving demand from the corporate segment and mortgages, with credit in these two segments rising 7.1% YoY and 6.5% YoY respectively to reach Rp269.9 trillion and Rp95.1 trillion. In the same period, commercial and SME loans rebounded, increasing 1.5% YoY to Rp185.4 trillion. Meanwhile, vehicle financing fell 7.6% YoY to Rp35.6 trillion, but we have seen lower rate of decline compared to earlier period. The outstanding balance on credit cards and others rose 1.2% YoY to Rp13.9 trillion. Overall consumer portfolio recovered with an increase of 2.1% YoY to Rp144.7 trillion. 

“BCA always emphasizes environmental, social, and governance (ESG) values in all of its activities, marked by a 25.6% YoY growth in sustainable financing, reaching Rp143.1 trillion. This amount represented 23.6% of the total loan portfolio, such as financing to the SME, natural resources and sustainable land use, and renewable energy,” said Jahja Setiaatmadja. 

On the third party funds side, BCA recorded a solid performance in the third quarter of 2021. CASA rose 21.0% YoY to reach Rp721.8 trillion as of September 2021. Meanwhile, time deposits also increased 9.7% YoY to Rp201.9 trillion. Overall, third party funds increased by 18.3% to Rp 923.7 trillion, propelling total assets to grow 16.5% YoY to reach Rp 1,169.3 trillion. This solid CASA funding was supported by BCA’s strong performance in the transaction banking that saw growing digital ecosystem and larger customer base. As of September 2021, CASA contributed to 78.1% of total third party funds. BCA processed 45.7 million transactions per day on average in the first nine months of 2021, up 39.2% from the same period last year, and the highest increase in the last three years. 

Along with solid liquidity growth and increasing outstanding loans, BCA maintained positive growth in Net Interest Income, up 3.3% YoY to Rp42.2 trillion, for the first nine months of 2021. Non-interest income was recorded at Rp15.5 trillion during the same period, a growth of 2.4% YoY. The positive performance of non-interest income was driven in part by a 11.2% increase year-on-year in fee and commission income, which reached Rp10.7 trillion. In total, operating income was recorded at Rp57.6 trillion, an increase of 3.1% YoY. Overall, net profit grew 15.8% YoY to Rp23.2 trillion, attributable to lower operating cost and lower loan provisioning expense. 

BCA’s financial ratios remained solid with Capital Adequacy Ratio (CAR) of 26.2%, higher than the regulatory requirement, and liquidity remained ample with Loan to Deposit Ratio (LDR) of 62.0%. Non-performing loan ratio (NPL) was manageable at 2.4%, supported by the relaxation of restructuring policy. Return on Assets (ROA) was recorded at 3.5%, and Return on Equity (ROE) at 18.7%. Loan at Risk (LAR) fell to 17.1% in the first nine months of 2021, from 19.1% in the first half of 2021. 

Embracing digital innovation, after launching “myBCA” apps and “blu”, the apps of our subsidiary Bank Digital BCA, we rolled out “haloBCA” apps and “merchantBCA” apps in July 2021. The haloBCA application integrates all contact center channels, allowing customers to contact Halo BCA via online calls without pulse charges, e-mails, chats, and social media venue. The merchantBCA application provides digital solution for customers to manage and run their business. Through this application, BCA’s merchant customers can apply for EDCs and QRIS on 24 hours basis, monitor EDC and QRIS transactions through dashboard, and download historical transaction records. In September 2021, BCA increased capital of its subsidiary, Bank Digital BCA, by Rp2.7 trillion to reach Rp4.0 trillion. With stronger capital, BCA Digital aims to provide various needs of customers through relentless innovations, and to expand its digital ecosystem. 

During the enforcement of Mobility Restriction policy, BCA also took an active role in supporting the government's efforts to curb the pandemic, as well as prioritizing the safety of employees and customers. BCA adjusted its work from home policy in accordance with government regulations and promoted “Banking from Home”. In order to support the national vaccination program, BCA implemented “Gotong Royong” program for employees. Furthermore, BCA also actively contributed to the provision of vaccination centers for people in various regions, collaborating with the government and relevant authorities. As of September 2021, more than 95% of BCA employees received at least the first dose of vaccine. In total, BCA has distributed vaccines to more than 150,000 recipients, including both employees and their families as well as the general public.

BCA's 2021 Third-Quarter Results – Bank Central Asia's (BCA) President Commissioner Djohan Emir Setijoso (second right), President Director Jahja Setiaatmadja (middle), Deputy President Director Suwignyo Budiman (right), Director Rudy Susanto (left), Director Vera Eve Lim (second left), Director Subur Tan (front), and Director Santoso (behind) at the presentation of BCA's 2021 third-quarter results in Jakarta, Thursday (21/10). In the third quarter of 2021, the bank's net profit increased by 15,8% YoY up to Rp23.2 trillion. The bank also recorded a solid performance in Third-Party Funds. CASA rose by 21.0% YoY up to Rp721.8 trillion in September 2021. Time Deposits increased by 9.7% YoY up to Rp201.9 trillion. Third-Party Funds increased by 18.3% to Rp 923.7 trillion, with total assets growing by 16.5% YoY up to Rp 1,169.3 trillion. 

BCA's 2021 Third Quarter Results – BCA's Corporate Secretary Raymon Yonarto (right), Secretariat & Corporate Communication Executive Vice President Hera F. Haryn (left), and Investor Relations Senior Vice President Rudy Budiardjo (middle) at the presentation of the bank's 2021 third-quarter results in Jakarta, Thursday (21/10).