PT Bank Central Asia Tbk First Quarter 2023 Results - Quality Credit Growth for Sustainable Performance

Jakarta, 27 April 2023 – Sustaining the credit growth in 2022, PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries posted a 12.0% year-on-year (YoY) increase in total loans as of March 2023. BCA and its subsidiaries booked a net profit of Rp11.5 trillion in the first quarter of 2023, a 43.0% growth YoY. This achievement was underpinned by credit expansion, improved loan quality, higher yields from placements in government bonds as one of the sources for financing national development, and growth in fee and commission income in line with the increase in transaction volume.

“We keep our lending rate unchanged to provide competitive interest rate environment and as part of our initiatives to boost national economic recovery. Ahead of this year’s Eid Al-Fitr celebration, we witnessed a strong momentum for working capital loan demand. Similarly, we also saw stronger appetite on consumer loans, as indicated by the enthusiasm during BCA Expoversary 2023. Consequently, we extended the closing date of the event by more than a month to 30 April 2023, giving customers more time to enjoy the special interest rate offered for mortgages and vehicle loans,” said President Director of PT Bank Central Asia Tbk, Jahja Setiaatmadja.

Corporate loans increased 11.7% YoY to Rp320.5 trillion in March 2023, and still represented the main contributor to BCA’s total loans. With rising business activities, commercial and SME loans grew 11.8% YoY to Rp211.1 trillion. BCA’s support for the SME sector is reflected in Macroprudential Inclusive Financing Ratio (RPIM), recorded at 22.1%, above the set target. Mortgages rose 11.6% YoY to Rp109.6 trillion and vehicle loans increased 15.2% YoY to Rp47.9 trillion, supported by ongoing BCA Expoversary 2023. Credit card outstanding also grew 16.2% YoY to Rp14.0 trillion, therefore total consumer loans increased 12.7% YoY to Rp174.5 trillion. Overall, BCA's total loans rose by 12.0% YoY to Rp713.8 trillion in March 2023.

With respect to sustainable financing, BCA’s portfolio grew by 11.9% YoY, reaching Rp180.8 trillion in March 2023, or accounted for 25.0% of total loans. To promote the development of EV ecosystem in Indonesia, BCA has disbursed Rp327 billion of financing for electric vehicle. BCA also offered promotional lending rates specifically available to commercial and SME debtors engaged in Environmentally Friendly Business Activities (KUBL). To support women entrepreneurs or businesses with predominantly female employees, BCA presented “#KaMUKartini Multipurpose Business Loans” program with special lending rates starting from 3.21% eff.p.a. Further, the Bank continued to support “circular economy” through waste recycling initiative from money wrapping plastic, which contributed to 11 tons in total managed non-organic waste in the first quarter of 2023, an increase of 319% YoY.

BCA's loan growth was accompanied by an improvement in loan quality, as the Bank’s restructured loans gradually recovered into normal payment term. The Loan at Risk (LAR) ratio improved to 9.5% in the first quarter of 2023, lower than 13.8% in the previous year. Meanwhile, the Non-Performing Loan (NPL) ratio was recorded at 1.8% in the first quarter of 2023, lower than 2.3% in the previous year. NPL and LAR coverage was at solid levels of 285.4% and 57.9%, respectively.

“We are optimistic in maintaining quality loan growth sustainably on the back of adequate liquidity. BCA applies prudent liquidity risk and market risk management practice, and ensure we are secured from the adverse impact of the global market dynamics that are currently taking place. The Bank’s liquidity coverage ratio (LCR) reached 386.1% as of the first quarter of 2023, far exceeding the requirement. BCA's excess liquidity was placed in high-quality investment instruments with relatively short tenors,” said Jahja Setiaatmadja.

On the funding side, CASA increased 5.7% YoY to Rp843.3 trillion in March 2023, contributing 81.2% to total third-party funds. Third-party funds grew by 4.1% YoY to Rp1,039 trillion, supporting total asset growth of 4.9% YoY to Rp1,322 trillion. In the first quarter of 2023, BCA’s total transaction volume increased by 27.3% YoY to reach 6.9 billion transactions. This achievement was supported by consistent expansion of online and offline channels through investment in multi-channels, as well as solid growth in the customer base. Particularly in digital channel, transaction through mobile banking and internet banking reached 5.8 billion, or rose 29.5% YoY.

Regarding the development of the myBCA app, which is being prepared to become an integrated service application for the future, BCA continues to add a number of features to improve transaction convenience, including debit card control, credit card control, to a cardless feature for cardless cash withdrawals and deposits at BCA ATMs. myBCA and BCA mobile will work in parallel in the future to provide comprehensive banking service solutions for customers.

BCA posted a positive growth in Net Interest Income for the first quarter of 2023, up 28.0% YoY to Rp18.5 trillion. Non-interest income grew 5.6% YoY to Rp6.3 trillion, supported by a 6.9% YoY increase in fee and commission income. In total, operating income was recorded at Rp24.8 trillion, up 21.5% YoY. In line with the improvement in asset quality, provision costs fell by Rp1.4 trillion from the previous year. All in all, BCA’s net profit rose 43.0% YoY to Rp11.5 trillion

As part of corporate social responsibility, Bakti BCA through the “Wayang for Student” program has provided training and assistance to the younger generation in preserving the art and culture of wayang (traditional puppet show) since 2012. In the first quarter of 2023, as the culmination of the “Wayang for Student” program, Bakti BCA held a contemporary wayang performance involving 118 students from 5 cities across Indonesia, and registered more than 1,000 visitors. For this consistency, BCA managed to break MURI (Indonesian World Records Museum) record as “the Company with the Most Wayang Preservation Activities”. In addition, Bakti BCA continues to promote environmentally friendly initiatives, including conversion of mileage to the "Walk for Tree" and "Bike for Tree" employee engagement programs, which produced nearly 40,000 tree seeds for planting. BCA participated in the global Earth Hour movement, switching off the lights for 1 hour in 864 BCA office buildings.

BCA Grants Quality Credits in The First Quarter of 2023- BCA President Commissioner Djohan Emir Setijoso (second right), BCA President Director Jahja Setiaatmadja (second left), BCA Deputy President Director Hendra Lembong (left), and BCA Director Subur Tan (right) pose for a photo after BCA's Financial Performance Presentation for Q1 2023 on Thursday (27/4). BCA and its subsidiary entities recorded a total credit growth of 12.0% YoY as of March 2023. In terms of profitability, BCA and its subsidiary entities posted net profit growth of 43.0% YoY to Rp11.5 trillion in Q1 2023.

Commitment to Support Sustainable Finance and Creating Value for Society - BCA's EVP Corporate Communication & Social Responsibility, Hera F. Haryn, stated in BCA's Q1 2023 Performance Presentation. Credit disbursement to sustainable sectors increased by 11.9% YoY, reaching Rp180.8 trillion in March 2023, including financing for electric vehicles amounting to Rp327 billion. As part of the company's social responsibility, Bakti BCA, through the "Wayang for Student" program, has provided training and mentoring to young generations in preserving wayang cultural arts since 2012. Due to the consistency of this cultural program, BCA has broken the MURI record as the "Company with the Most Wayang Cultural Preservation Activities.