Bank Central Asia (BCA) Sees Solid Net Profit Growth in 2015
Bank Central Asia (BCA), one of the largest banks in Indonesia, saw its net profit rise 9.3 percent year-on-year (y/y) to IDR 18 trillion (approx. USD $1.4 billion) in 2015, supported by strong loan growth and the relatively low cost of funds. Meanwhile, BCA's net interest income, the difference between interest earned and interest paid, grew 12 (y/y) to IDR 35.9 trillion (approx. USD $2.7 billion) and non-interest income, which includes fees such as deposit and transaction fees, rose 28.5 percent (y/y) to IDR 12 trillion (approx. USD $909 million).
Jahja Setiaatmadja, President Director at Bank Central Asia (BCA), said the company is pleased with its financial performance over 2015 given Indonesia's challenging economic conditions and the impact of this context on the nation's banking sector. For example, BCA's total outstanding loan growth rose 11.9 percent (y/y) to IDR 387.6 trillion (approx. USD $29.4 billion) but the bank's (gross) non-performing loans (NPL) remained low at 0.7 percent. Meanwhile, third-party funds grew 5.8 percent (y/y) to IDR 473.7 trillion (approx. USD $35.9 billion).
Setiaatmadja said BCA will continue its prudent financial policies and remain alert for any unexpected economic troubles as the global outlook remains fragile with the presence of persistent concerns about economic growth in China, Japan, and the Eurozone, while the US economic recovery is also plagued by a high degree of uncertainty. Domestically, an increase in the country's overall NPLs could have a chain effect on BCA's loan quality.
BCA is considering to acquire two small banks later this year (possibly in the second half of the year) provided Indonesia's economic conditions are solid enough. Last year BCA delayed these acquisition plans due to macroeconomic turmoil.
Shares of BCA were up 1.11 percent to IDR 13,675 by 09:45 am local Jakarta time on Friday (04/03). So far this year, the bank's shares have risen 1.69 percent.
Stock Quote Bank Central Asia - BBCA:
In terms of net interest income and net profit BCA was Indonesia's third-largest bank in 2015 (after state-controlled banks Bank Rakyat Indonesia and Bank Mandiri).
Net Profit & Net Interest Income Indonesian Banks:
| (in IDR trillion) | 2014 | 2015 | ||
| Net Profit |
Net Interest Income |
Net Profit |
Net Interest Income |
|
| Bank Rakyat Indonesia | 24.2 | 50.1 | 25.2 | 56.5 |
| Bank Mandiri | 19.9 | 39.1 | 20.3 | 45.4 |
| Bank Central Asia | 16.5 | 32.0 | 18.0 | 35.9 |
| Bank Negara Indonesia | 10.8 | 22.8 | 9.1 | 25.6 |
| Bank Danamon | 2.6 | 13.7 | 2.4 | 13.6 |
| CIMB Niaga | 2.3 | 10.7 | 0.4 | 11.4 |
| Bank Panin | 2.0 | 6.2 | 1.3 | 7.2 |
| Maybank Indonesia | 0.7 | 5.9 | 1.1 | 6.5 |
| Bank Permata | 1.6 | 5.7 | 0.2 | 6.5 |
| Bank Tabungan Negara | 1.2 | 5.5 | 1.9 | 6.7 |
Source: Kontan