PT Bank Central Asia Tbk First Half 2021 Results Resilience to Withstand Uncertainties

Jakarta, 22 July 2021 – PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries reported an encouraging financial performance for the first half of 2021. Our customers showed recovery on their business transactions and turnover in the first six months along with improved economic activities. Consumer spending saw an increasing trend during the same period. As of June 2021, lending increased 0.8% YtD, supported by corporate segment and mortgage with a year to date increase of 2.1% and 3.8%, respectively. Commercial & SME loans also started to pick up QoQ in 2Q21. On the funding side, CASA rose 8.3% YtD, owing to increasing transaction value, larger customer base and expanded ecosystem through partnerships. 

Mr. Jahja Setiaatmadja, the President Director of PT Bank Central Asia Tbk, said “We are pleased to announce resilient results for the first half of 2021. We wish to extend our appreciation to the Government and regulators for the tremendous supports and to our loyal customers who always inspire us in delivering quality services. We saw some growth tractions in certain economic sectors in the first half of 2021. Mortgage loan demand was visible during our last online Expoversary held in March 2021. In the upcoming months, we cautiously monitor the business environment dynamics particularly during the emergency restriction period to curb the recent Covid-19 cases.” 

BCA recorded a positive growth in net interest income of 3.8% YoY to Rp 28.3 trillion in the first half of 2021. Non-interest income was slightly lower by 1.2% YoY at Rp 10.2 trillion, largely due to one-off gains from mutual funds sale last year that offset the YoY increase in recurring fees and commissions. Fees and commission rose 7.5% YoY, above the pre-pandemic level which mostly contributed by recovery in transaction banking related fees from increasing number of customers and transaction volume. On total, operating income grew by 2.4% from last year to Rp 38.5 trillion, and net profit increased 18.1% YoY to Rp 14.5 trillion due to the lower base of net profit in 2Q20 resulted from the higher credit cost during the early stage of the pandemic. Provision expense in 2Q20 was 32.4% higher compared to 2Q21. 

On YoY comparison, loans were stable at Rp 593.6 trillion as of June 2021, supported by corporate segment, mortgage and credit card outstanding. Corporate loans increased 1.0% YoY to Rp 260.4 trillion in June 2021. At the same period, mortgage also saw a rise of 2.9% to Rp 93.6 trillion as the result of BCA virtual expoversary held in March 2021 whereby most of the loans were booked in the second quarter of the year. Credit card outstanding posted a rebound, up 4.5% YoY to Rp 14.0 trillion. Commercial and SME loans came lower by 1.0% to Rp 182.8 trillion due to slow business activities. Vehicle loans decreased by 13.4% YoY to Rp 36.8 trillion. 

Third-party deposits performance remained robust, with current account and savings account (CASA) rose 21.0% YoY to Rp 697.1 trillion. Time deposits grew by 6.8% YoY to reach Rp 198.2 trillion. Overall, third-party deposits grew by 17.5% from last year to Rp 895.2 trillion, boosting the total asset by 15.8% to Rp 1,129.5 trillion as of June 2021. By leveraging our large customer base and bolstering endless digital journey to expand ecosystem, we are able to maintain our strengths in transaction banking and in delivering sticky CASA funds. BCA processed an average daily transactions of 41 million for the first half of 2021, up from 28 million in the same period last year. CASA funds contributed 77.9% to total third-party deposits as of Jun21. 

BCA’s capital stood at strong position with CAR of 25.3%, well above the regulatory requirement, and liquidity remained ample with LDR ratio of 62.4%. NPL stood at a tolerable level of 2.4%, supported by relaxation on restructuring policy. Managing loan at risk will be one of the Bank’s focus for the next half of the year due to the prolonged pandemic. Return on Assets (ROA) was recorded at 3.1% and Return on Equity (ROE) at 16.6%. 

“The pandemic has inevitably propelled digitalization in many ways including in providing banking services. BCA recently launched some initiatives that include the launching of myBCA – an initial stage of the Bank’s integrated future apps. This digital trend is likely to stay going forward, as can be seen in our exponential growth in the number of transactions through mobile and internet banking. Digitalization is unstoppable, and we are excited to welcome all business partners to work together in the era of collaboration.” said Mr. Jahja Setiaatmadja. 

PT Bank Digital BCA, a wholly owned subsidiary of BCA, recently launched its digital apps namely “blu” to serve the digital savvy and millennial segment, while answering the digitalization race to cater the high young population. As an initial stage, blu offers some saving products, namely bluAccount for main transaction account; bluSaving for various purposes; and bluGether, a pocket-sharing account for several members. Inter-bank online transfer from blu to BCA and vice versa, is easy and seamless. 

As a responsible entity, BCA continues to promote ESG principles, marked by its strong lending commitment to sustainable sectors & SME, and through participations in various programs to create social values. From the total loan portfolio, approximately 23.0% or Rp 136.2 trillion was linked to sustainable financing. In 2Q21, BCA hosted UMKM Fest, promoting >1,700 micro and SME players via online platform. The event was held in collaboration with the Government and its related affiliates, which allowed access and coaching for merchants to tap the export markets. During the current emergency restriction period, BCA proactively supports the Government in managing the pandemic while also prioritizing the safety of its employees and customers. BCA adjusts the Work From Home policy between 50% to 75% and promotes #bankingfromhome. For ease of customer transactions, BCA also increases the daily transaction limit in internet banking to Rp 500 million from 250 million, in BCAmobile up to Rp 200 million (depending on the card type) and in myBCA to Rp 300 million. Internet banking is also now available for foreign currency transactions. 

In supporting the acceleration of Covid-19 vaccination to achieve herd immunity, BCA participates in various Government-sponsored programs, amongst other the corporate-subsidized vaccination scheme namely “Vaksinasi Gotong Royong” or VGR commencing in May 2021. By early July 2021, more than 80% of employees have received at least the first dose or second dose of vaccinations. In total, BCA has distributed vaccines to more than 40,000 recipients including BCA employees and family as well as to the public.

BCA’s 2021 First-Half Results – (right-left) BCA’s Deputy President Director Suwignyo Budiman, BCA’s President Director Jahja Setiaatmadja, BCA’s Director Vera Eve Lim and BCA’s Director Rudy Susanto during the presentation of BCA’s 2021 First-Half Results, Jakarta, Thursday (22/07). In the first half of 2021, the bank recorded net profit increased 18.1% YoY to Rp 14.5 trillion. Third-party deposits performance remained robust, with current account and savings account (CASA) rose 21.0% YoY to Rp 697.1 trillion. Time deposits grew by 6.8% YoY to reach Rp 198.2 trillion. Overall, third-party deposits grew by 17.5% from last year to Rp 895.2 trillion, boosting the total asset by 15.8% to Rp 1,129.5 trillion as of June 2021.