PT Bank Central Asia Tbk (BCA) and its subsidiaries have announced an impressive net profit of IDR 36.4 trillion, signifying a robust 25.8% year-on-year growth in earnings up to September 2023.
Jahja Setiaatmadja, President Director of BCA, highlighted the company’s significant increase in total loans by 12.3% year-on-year as of September 2023.
“The substantial credit growth is attributed to the successful BCA Expo 2023 conducted in the third quarter of this year, following the accomplishments of the BCA Expoversary 2023 last February,” Setiaatmadja noted.
This surge in profits stems from the expansion of the credit volume across all segments, the consistent improvement in loan quality, and an upturn in transaction volume and funding.
Moreover, BCA reported a 21.3% year-on-year increase in net interest income, reaching IDR 55.9 trillion by September 2023. “Non-interest income grew by 9.7% year-on-year, amounting to IDR 18.3 trillion, primarily driven by a 7.7% year-on-year rise in fee and commission income,” Setiaatmadja added.
In total, operational income stood at IDR 74.2 trillion, marking an 18.2% year-on-year increase. Together with enhanced asset quality, the provision costs declined by IDR 1.6 trillion compared to the previous year.
In terms of funding, the Current Account Saving Account (CASA) witnessed a 4.7% year-on-year surge, reaching IDR 869.8 trillion by September 2023, contributing to around 80% of total third-party funds.
Overall, total third-party funds grew by 6.2% year-on-year, amounting to IDR 1.089 trillion, propelling BCA’s total assets to a 7.2% year-on-year increase, reaching IDR 1.381 trillion.
“Robust CASA funding aligns with the increased banking transaction activity and consistent customer base growth,” Setiaatmadja commented.
As debtor businesses recover, Jahja explained that the restructured loan portfolio continues to improve. This is evident in the reduced loan at risk (LAR) ratio, down to 7.6% by September 2023 compared to the previous year’s 11.7%.
Meanwhile, the non-performing loan (NPL) ratio reached 2% in the first nine months of 2023, down from 2.2% in the previous year.
BCA maintains substantial provisions, with the NPL and LAR provisioning ratios at robust levels of 226.9% and 66.6%, respectively.
Up to Q3 2023, BCA’s total transaction volume grew by 26.8% year-on-year, reaching 22 billion transactions. The mobile banking channel recorded the highest transaction volume growth, surging by 43.4% year-on-year. Customer account numbers reached 38.8 million by September 2023, up 17.1%.
For the development of the Wealth Management feature (WELMA) in myBCA, BCA has launched investments in mutual funds starting from IDR 10,000, FR Bonds starting from IDR 1 million, and INDON/INDOIS starting from US$ 1,000. Furthermore, Wealth Insight serves as an investment education platform.
Regarding the myBCA application’s evolution into a future integrated service app, BCA has added the Paylater BCA feature, a credit facility for alternative payments through QRIS scanning.
Armand Hartono, Vice President Director of BCA, believes that the impact of Bank Indonesia’s temporary reduction of the maximum credit card interest rate cap to 2.25% is only short-term. He expressed confidence that the decrease in the maximum cap will lead to an increase in transaction volume and the number of customers, thereby compensating for the decline in credit card transaction interest income due to the cap reduction.
