PT Bank Central Asia Tbk First Quarter 2021 Results - Solid Earnings Performance with Strong Balance Sheet in the Middle of Pandemic

Jakarta, 22 April 2021 – In the middle of pandemic that has been prolonged over a year, PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries recorded a solid financial performance in the first quarter of 2021 alongside with strong capital and liquidity position. BCA recorded a net profit of Rp7.0 trillion, an increase of 7.0% YoY. In the midst of gradual economic recovery from the pandemic, combined portfolio of loans and corporate bonds have been relatively stable since year end 2020, stood at Rp610.0 trillion as of 31 March 2021. The portfolio was supported by corporate bonds, a 6.9% increase compared to December 2020. Meanwhile BCA saw a positive loan growth in corporate segment, supported by stronger demand in telco industry, edible oil and plantations. 

Mr. Jahja Setiaatmadja, President Director of PT Bank Central Asia Tbk, said “Owing to the support of our customers, regulators and all parties, the Bank and its subsidiaries have navigated this difficult time and delivered a solid performance. Amidst government stimulus to spur consumer loan demand, BCA Online Expoversary was held in March 2021, offered special rates for mortgages and auto loans to serve retail segment. During the one month Expoversary, we are delighted to see 1.2 million visitors in the event that gathered applications of Rp15 trillion and Rp5 trillion in mortgages and vehicle loans respectively, reflecting customers purchasing power and appetite in the market. To support the economic recovery in Micro SME segment, we host online exhibition ‘BCA UMKM fest’ which involves ~1,700 merchants in promoting more than 18,000 products to both domestic and export markets”. 

In line with the Bank’s commitment to grow lending, business loan facilities increased by 6% YoY. However, slower business activities have led to lower loan utilization rate which caused a decline in loan balance to Rp586.8 trillion in March 2021. Corporate lending reached Rp262.6 trillion in March 2021, up 0.9% YoY, while commercial and SME loans decreased 6.4% YoY to Rp178.9 trillion. Total consumer loans declined 10.0% YoY to Rp139.5 trillion. Within consumer portfolio, mortgages declined 3.4% YoY to Rp89.4 trillion and vehicle loans decreased 23.7% YoY to Rp36.0 trillion. Credit card outstanding balances decreased 10.2% YoY to Rp11.1 trillion. New consumer loan applications from BCA Online Expoversary will contribute to new loan disbursement in the second quarter of the year. From the total loan portfolio, about 21.4% or Rp126.0 trillion was linked to sustainable financing portfolio. 

On the third party deposits front, BCA is pleased to report its strong performance for the first quarter of 2021. Current account and savings account (CASA) rose 15.4% YoY to Rp655.8 trillion, generated a total third party deposits growth of 14.6% YoY to Rp849.4 trillion. Meanwhile time deposits grew by 12.2% YoY to reach Rp193.6 trillion. The strong growth in third party deposits has boosted the total assets to grow 12.1% YoY amounted to Rp1,090.4 trillion by end of March 2021. 

High customer trust and solid footing in transaction banking franchise on the back of continued development of digital platform have generated sticky CASA funds as the Bank’s core funding. CASA funds contributed 77.2% to total third party deposits. BCA processed an average daily transaction of 40.5 million for the first quarter of 2021, up from 31.5 million in the same period last year. We continue to see rapid growth in the number of transactions in our mobile and internet channels as society trend is now shifting towards more digitalization. 

Third party funds growth has enabled the Bank to generate higher interest income from treasury assets, compensating the decline in loan yield and lower outstanding loans. At the same time in line with Bank Indonesia rate trend, BCA has been able to lower interest rates of deposit products which resulted in lower interest expense. Therefore, BCA recorded a positive growth in net interest income of 3.3% YoY to Rp14.1 trillion. Non-interest income came in lower at Rp4.9 trillion, a decrease of 14.5% YoY as non interest income in the first quarter of last year was largely supported by one-off gain from mutual fund portfolio sale. In total, operating income was recorded at Rp19.1 trillion, a decrease of 2.0% YoY, and net profit at Rp7.0 trillion, up 7.0% YoY. 

BCA’s capital stood at strong position with CAR of 24.5%, well above the regulatory requirement, and liquidity remained ample with LDR ratio of 65.2%. NPL was at tolerable level of 1.8% compared to 1.6% in the first quarter of last year, supported by relaxation on restructuring policy. Normalizing the restructured loans will be one of the Bank’s focus in 2021. Return on Assets (ROA) was recorded at 3.1% and Return on Equity (ROE) at 15.8%. 

 “As the economy is seeing a gradual recovery from the pandemic, BCA will remain cautiously optimistic in tapping business opportunities across segments this year. Last but not least, as a responsible corporate citizen and our commitment to support the value of Environment, Social and Governance (ESG), BCA continues to actively engage in Corporate Social Responsibility (CSR) activities, focusing on community empowerment, cultural development, education and health” said Mr. Jahja Setiaatmadja. 

In the health area, BCA CSR provides donations to public healthcare centers (puskesmas), face masks for communities and encourage employees to participate in blood donors. The Bank implements disciplined health and safety protocols for its customers and employees since the pandemic emerged. In carrying social mission, humanitarian assistance is distributed to communities affected by recent earthquakes and floods. In the first quarter of 2021, BCA is delighted to see that ‘Desa Pentingsari’ in Yogyakarta was recognized as ‘Sustainable Village’ by the Ministry of Tourism & Creative Economy. The village is one of community empowerment programs under ‘Bakti BCA’ CSR.

BCA’s First Quarter 2021 Financial Results – BCA's President Commissioner Djohan Emir Setijoso (second from the right), President Director Jahja Setiaatmadja (center), Deputy President Director Suwignyo Budiman (right), Director Rudy Susanto (left), Director Vera Eve Lim (second left), Director Santoso (left) and Director Subur Tan (front) during the presentation of BCA's First Quarter 2021 Financial Results, Jakarta, Thursday (22/04). In the first quarter of 2021, the bank recorded a 7.0% (YoY) growth in net profit, up to Rp7.0 trillion. Current account and savings account (CASA) rose by 15.4% (YoY) up to Rp655.8 trillion, contributing to Third-Party Deposits’ 14.6% (YoY) growth up to Rp849.4 trillion. Meanwhile, time deposits grew by 12.2% (YoY) up to Rp193.6 trillion. The robust increase in Third-Party Deposits has helped push total assets growth by 12.1% (YoY), amounting to Rp1,090.4 trillion by the end of March 2021.

BCA’s First Quarter 2021 Financial Results - (left to right) BCA’s Corporate Secretary Raymon Yonarto, BCA’s Executive Vice President Secretariat & Corporate Communication Hera F. Haryn, and BCA’s Senior Vice President Investor Relations Rudy Budiardjo announced the bank's First Quarter 2021 Financial Results in Jakarta on Thursday (22/04).