PT Bank Central Asia Tbk January-September 2020 - Results Solid Liquidity in the Challenging Time

Jakarta, 26 October 2020 – PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries today announced the first nine months 2020 consolidated net income of Rp20.0 trillion, a 4.2% decline compared to consolidated net income of Rp20.9 trillion in the same period last year due to higher loan provisioning expense. Despite the economic challenges, BCA posted positive growth in pre-provisioning operating profit (PPOP) on the back of strong CASA growth, lower cost of funds and slower spending. PPOP increased 13.5% YoY to Rp33.8 trillion. 

The banking sector loan demand has not picked up as prolonged pandemic continued to restrict mobility and affect businesses. BCA’s total loans stood at Rp581.9 trillion at the end of September 2020, -0.6% YoY growth. A positive corporate loan growth supported the Bank’s overall lending and helped offsetting the decline in loan outstanding from other segments. Corporate loans were Rp252.0 trillion, an 8.6% increase YoY, while commercial and SME loans decreased 4.9% YoY to Rp182.7 trillion. In consumer lending, mortgages declined 3.1% YoY to Rp89.3 trillion, auto loans decreased by 19.3% YoY to Rp38.6 trillion while credit card outstanding balances fell by 18.5% YoY to Rp10.9 trillion. In total, consumer loans declined 9.4% YoY to Rp141.7 trillion. Out of the total loans, about 20% or Rp114 trillion was deployed as sustainable financing portfolio to promote the importance of ESG subject and SME community. 

“In the lending side BCA focused in helping our valued customers to restructure their loans since the start of pandemic. As of mid-October 2020, BCA has reviewed loan restructuring proposals amounted to Rp107.9 trillion or approximately 19% of total loans that came from 90,000 customers. The restructured loans amounted to Rp90.7 trillion, or 16% of total loans as of 30 September 2020 across loan segments. We are grateful to the regulator’s relaxation program for supporting banks and their customers to go through difficult time and looking forward for recoveries” said President Director of PT Bank Central Asia Tbk, Mr. Jahja Setiaatmadja. 

On the third party deposits front, BCA is pleased to report its robust performance for the first nine months of 2020. Current account and savings account (CASA) rose 16.1% YoY to Rp596.6 trillion, generated a total third party deposits growth of 14.3% YoY to Rp780.7 trillion. Meanwhile time deposits grew by 8.8% YoY to reach Rp184.1 trillion. The strong growth in third party deposits has boosted total assets to exceed one thousand trillion mark, reaching Rp1,003.6 trillion, up12.3% YoY. 

BCA’s strong footing in transaction banking franchise on the back of large customer base and continued development of digital platform has generated sticky CASA funds as the Bank’s core funding. CASA funds contributed 76.4% to total third party deposits. BCA processed an average of about 33 million daily transactions for the first nine months of 2020, up from 26 millions in the same period last year. We continue to see rapid growth in the number of transactions on our online mobile and internet channels. 

In the profit and loss statement, despite flat growth in interest income the Bank’s net interest income rose 9.0% YoY to Rp40.8 trillion in the first nine month of 2020, mainly contributed by lower interest expense. BCA has been able to lower third party deposit rates across products in line with Bank Indonesia’s low interest rate policy. Non-interest income was Rp15.1 trillion, increased 3.0% YoY. On total, the nine month operating income was Rp55.9 trillion, an increase of 7.3% YoY. Operating expense was recorded at Rp22.1 trillion, or a decline of Rp216 billion from last year. As a result, PPOP rose by Rp4.0 trillion or 13.5% to Rp33.8 trillion, providing buffer for higher provision expense. BCA booked provision expense of Rp9.1 trillion, an increase of Rp5.6 trillion (160.6%) YoY in line with higher risk of potential deterioration in loan quality. Overall, net profit declined by Rp886 billion or 4.2% YoY to Rp20.0 trillion. 

BCA’s key financial ratios remained robust to go through the prolonged pandemic with CAR ratio of 24.7% in September 2020, well above the regulatory requirement, and healthy LDR ratio of 69.6%. NPL was also retained at tolerable level of 1.9% compared to 1.6% last year. The Bank registered Return on Assets (ROA) of 3.4% and Return on Equity (ROE) of 16.9% in the first nine months of 2020. 

“COVID-19 outbreak not only challenges us all in many aspects, it also forces us to manage uncertainties. Aside from the challenges, the pandemic also presents opportunities especially to promote our digital channels to serve our customers better. Going forward, we expect more cashless and cardless transactions to be a significant part of the next normal,” said Mr. Jahja Setiaatmadja. 

Since the early stage of the pandemic, BCA has put a number of actions to help protect our employees and customers from the immediate effects of the COVID-19 outbreak. Those initiatives include temperature check at banking premises, enforcing physical distancing, work from home policy, split operation, regular room sterilization and ozone disinfection, installment of hand washing stations and conducting COVID-19 self risk-assessment 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, and also community basic needs which were delivered through BCA branches throughout Indonesia. BCA is committed to be a responsible corporate citizen and promote the values of ESG (Environmental, Social and Governance). BCA embraces the value of ‘Good health and well being’ as one of SDG elements (Social Development Goals) promoted by United Nations. 

BCA’s Third Quarter of 2020 Results - Bank Central Asia’s (BCA) President Commissioner Djohan Emir Setijoso (second right) and BCA’s President Director Jahja Setiaatmadja (third right), BCA’s Deputy President Director Suwignyo Budiman (right), BCA's Director Rudy Susanto (second left), BCA's Director Santoso Liem (fifth right), BCA's Director Vera Eve Lim (fourth right), and BCA's EVP Secretariat & Corporate Communication Hera F. Haryn (via video conference) announced the bank's Third Quarter of 2020 Results in Jakarta on Monday (26/10). Within the first nine months of 2020, the bank gained a net income of Rp20.0 trillion supported by solid operational achievements. CASA rose 16.1% YoY to Rp596.6 trillion, generated a total third party deposits growth of 14.3% YoY to Rp780.7 trillion. Meanwhile time deposits grew by 8.8% YoY to reach Rp184.1 trillion. The strong growth in third party deposits has boosted total assets to exceed one thousand trillion mark, reaching Rp1,003.6 trillion, up 12.3% YoY.