- Healthy third party funds growth of 11.9%
- Sustainable profitability with a net profit growth of 14.4% to Rp 20.6 trillion
Jakarta, 13 March 2017 – PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries recorded solid financial performance for the full year 2016, closing the year with an increase in net profit of 14.4% to Rp 20.6 trillion compared to previous year’s Rp 18.0 trillion. Supported by a low cost of funds, a quality loan portfolio and solid earning assets growth, the Bank’s net interest income increased by 12.0% to Rp 40.2 trillion in 2016 from Rp 35.9 trillion in 2015. Non-interest income grew by 13.2% to Rp 13.6 trillion at the end of 2016. The Bank’s operating income as a total of net interest income and non-interest income grew 12.3% to Rp 53.8 trillion in 2016.
BCA’s President Director, Mr. Jahja Setiaatmadja, noted that, “BCA’s performance in 2016 was achieved through initiatives to capture business opportunities and ongoing efforts to optimize operational efficiency, enabling the Bank to close the year with higher net profit growth than the year before. Deposits from current accounts and savings accounts (CASA) continued to grow supported by the Bank’s reliable transaction banking services. The tax amnesty in semester II 2016 also contributed to the increase in CASA funds. During a modest loan demand environment, BCA worked to optimize lending opportunities across all segments and to offer competitive interest rates to the Bank’s borrowing customers.
In 2016 the loan portfolio increased by 7.3% to Rp 416 trillion led by corporate and consumer loans. The Bank saw high corporate loan disbursement in the last quarter 2016 due to high seasonal demand at year end. Corporate loans grew 9.6% to Rp 154.9 at the end of 2016. Consumer loans increased by 9.0% to Rp 109.6 trillion supported by competitive consumer loan products, particularly mortgages, and four-wheeler financing. Mortgages increased 7.6% to Rp 64.0 trillion, while vehicle loans rose 10.1% to Rp 34.8 trillion in 2016. In the same period, credit card outstanding balances grew 13.7% to Rp 10.8 trillion. Meanwhile, commercial and SME loans increased by 3.8% to Rp 151.9 trillion.
Due to its disciplined risk management, the Bank was able to maintain the gross Non-Performing Loans (NPL) ratio at a low level of 1.3% at the end of 2016. Though higher than last year’s 0.7%, the ratio at year-end was below the average banking industry NPL ratio of 2.9%. In 2016, the Bank increased loan provisions by Rp 4.5 trillion and ultimately recorded total impairment allowance provision of Rp 12.5 trillion, a 38.5% increase compared to 2015. As such, the ratio of impairment allowance provision to NPL stood at 229.4%. BCA maintained an adequate capital and liquidity position with a Capital Adequacy Ratio (CAR) of 21.9% and a Loan to Funding Ratio (LFR) of 77.1% as of 31 December 2016.
On the funding side, the Bank’s preeminence in providing reliable, secure and convenient transaction services has supported BCA in maintaining healthy third party funds growth, particularly from Current Accounts and Savings Accounts (CASA). At the end of 2016, third party funds stood at Rp 530.1 trillion, an increase of 11.9% from the previous year’s Rp 473.7 trillion. CASA accounts made up the largest portion of the Bank’s total third party funds at 77.0% while time deposits contributed the remaining 23.0% of the total. Within total CASA, current accounts grew 19.2% to Rp 137.9 trillion from Rp 115.7 trillion in the previous year and savings accounts rose 10.5% to Rp 270.3 trillion by the end of 2016 from Rp 244.6 trillion in 2015.
“Indonesian economic prospects are expected to improve in 2017 driven by prudent Government policies, the continuing impact of the tax amnesty program, and ongoing infrastructure developments. Investments in the multichannel infrastructure of transaction banking and in increasing lending capabilities will continue, enabling BCA to optimize and capture opportunities in 2017 and the long-term prospects of the Indonesian banking industry,” said Mr. Jahja Setiaatmadja, President Director of BCA.
BCA Performance Exposure 2016 - President Director of PT Bank Central Asia Tbk Jahja Setiaatmadja (center), Vice President Director of BCA Eugene Keith Galbraith (left), BCA President Director DE Setijoso (right), along with board of directors and other commissioners described BCA's solid performance In 2016, with net profit growth of 14.4% reaching Rp20.6 trillion. Supported by low cost of funds, quality of loan portfolio and solid productive asset growth, BCA has maintained a healthy growth of third party funds and keeping NPLs at a low level by the end of the year 2016.
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About PT Bank Central Asia Tbk (as of 31st December 2016)
PT BANK CENTRAL ASIA TBK
Corporate Secretary
Public Relationst
For more information, please contact:
Public Relationst
Address : Jl. MH Thamrin No. 1
Menara BCA 20th Floor
Jakarta Pusat
Telephone : (021) 2358-8000
Fax : (021) 2358-8300
E-mail : humas@bca.co.id
