Jakarta, 27 July 2020 - PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries reported a resilience first half 2020 results in the midst of COVID-19 pandemic. Pre-provisioning operating profit grew positively supported by lower cost of funds and slower operating spending. Solid pre- provisioning operating profit offset rising loan provision expense as anticipation for potential deterioration in credit quality. Net profit in the first half of 2020 was recorded at Rp12.2 trillion, compared to Rp12.9 trillion in the same period last year.
The pandemic has halted business activities across industries, resulting in weaker loan demand particularly from March to June 2020. Loans grew 5.3% YoY to Rp595.1 trillion in June 2020, driven by corporate segment. Corporate lending reached Rp257.9 trillion, rose 17.7% YoY, while commercial and SME loans decreased 0.9% YoY to Rp184.6 trillion. Within consumer portfolio, mortgages posted flat growth of 0.3% YoY to Rp91.0 trillion and vehicle loans decreased 11.9% YoY to Rp42.5 trillion. Credit card outstanding balances decreased 18.6% YoY to Rp10.6 trillion due to falling domestic consumptions. Total consumer loans declined 5.1% YoY to Rp146.9 trillion.
Mr. Jahja Setiaatmadja, President Director of PT Bank Central Asia Tbk, said “BCA focuses on assisting customers to weather the sluggish business environment by providing selected loan restructuring schemes across loan segments. From March to June 2020, BCA has worked on loan restructuring proposals amounted to Rp115 trillion or approximately 20% of total loans that came from 118,000 customers. As of 30 June 2020, the completed restructured loans amounted to Rp69.3 trillion, or 12% of total loans. The Bank’s restructured loans are estimated to be within the range of 20-30% of total loans from 200,000-250,000 borrowers”.
Amidst the challenge from the pandemic, BCA is pleased to record a healthy growth in third party deposits for the first half of 2020. CASA grew 12.8% YoY, reaching Rp575.9 trillion and accounted for 75.6% of total third party deposits in June 2020. Robust transaction banking franchise is the driving force behind our growing and sticky CASA funds. The Bank continues to invest in its transaction banking platform particularly in the digital channels. Number of accounts increased 11.9% YoY, reaching 22.5 million accounts by the end of June 2020 supported by on- line account opening service. Meanwhile time deposits grew by 13.6% YoY to reach Rp185.6 trillion. Overall total third party deposits recorded 13.0% YoY growth to Rp761.6 trillion. Liquidity position stayed sound with LDR stood at 73.3%. Liquidity is sustained at healthy level to weather any unanticipated needs, particularly during the pandemic cycle.
In the first half of 2020 the Bank was able to reduce cost of fund, which helped netting out the pressure on gross interest income resulted from the increased in restructured loans. Net interest income rose 10.6% YoY to Rp27.2 trillion. This achievement supported the Bank to generate total operating income of Rp37.8 trillion, an increase of 10.3% YoY. On the other hand, operating expenses booked lower growth of 3.8% YoY to Rp16.2 trillion. Subsequently, pre-provisioning operating profit increased 15.8% YoY to Rp21.5 trillion, a substantial expansion to cushion the incrementing provision expense.
Provision expense was Rp6.5 trillion for the first semester of the year, in line with higher risk of potential deterioration in loan quality. Net profit was Rp12.2 trillion for the first half of 2020, compared to Rp 12.9 tn a year ago. Amidst this challenging time, BCA was able to maintain a solid capital position as reflected in the CAR ratio of 22.9% in Jun20, significantly above the regulatory requirement. NPL ratio stood at 2.1% compared to 1.4% as of June 2019. The Bank registered Return on Assets (ROA) of 3.1% and Return on Equity (ROE) of 15.6% in the first half 2020.
“During this COVID-19 pandemic period, we work together with all stakeholders to provide solutions for our customers and aim for recoveries. To better accommodate customers’ needs while #BankingFromHome, we continuously enhance our digital channel capabilities. We also optimize the use of technology to support various day-to-day operational activities, both internally and externally” said Mr. Jahja Setiaatmadja
For the customers and employees’ health, BCA has been taking proactive actions in implementing the health guidelines, including temperature check at banking premises, enforcing physical distancing, partial Work From Home policy, split operation, providing bus for employees, and conducting COVID-19 self risk-assesment for employees and visitors. For communities, ‘Bakti BCA’ provides social supports & donations including health assistance such as personal protective equipment and ventilator units for several hospitals.
BCA’s 2020 First-Half Results - BCA’s President Director Jahja Setiaatmadja (third from the right) and BCA President Commissioner Djohan Emir Setijoso (second from the right), along with BCA's Board of Directors and Commissioners at the virtual press conference for BCA's 2020 First Half Results in Jakarta, on Monday (July 27th). BCA and its subsidiaries recorded a net profit of Rp12.2 trillion in the first half of 2020. Loans grew 5.3% YoY to Rp595.1 trillion in June 2020, driven by corporate segment. BCA booked a total operating income of Rp37.8 trillion, a 10.3% (yoy) growth
About PT Bank Central Asia Tbk (as of 30th June 2020)
BCA is one of the leading commercial banks in Indonesia with a core focus on transaction banking and providing loan facilities and solutions to the corporate, commercial and SME and consumer segment. As of June 2020, BCA had the privilege of serving 22.5 million accounts, processing around 30 millions of daily transactions through 1,251 branches, 17,360 ATMs as well as the 24-hour internet & mobile banking, and Halo BCA contact center.
PT BANK CENTRAL ASIA TBK
Corporate Secretary Public Relations
Address: Jl. MH Thamrin No.1, Menara BCA 20th Floor. Jakarta 10310
Telephone: (021) 2358-8000
Fax: (021) 2358-8339