Amid The Pandemic, Bank BCA Profits Decreased, But Still At IDR 20 Trillion

JAKARTA - PT Bank Central Asia Tbk (BCA) recorded financial performance during the first nine months of 2020 with a net profit of IDR 20 trillion or a decrease of 4.2 percent compared to the same period in the previous year of IDR 20.9 trillion.

"It was 4.2 percent lower compared to Rp20.9 trillion in the previous year due to the increase in reserve costs," said PT Bank Central Asia Tbk President Director Jahja Setiaatmadja during a virtual press conference in Jakarta, quoted from Antara, Monday, October 26.

However, Jahja stated that BCA managed to record positive growth in profit before fees and taxes (PPOP) amid the pandemic and a number of economic challenges, namely an increase of 13.5 percent (year on year / yoy) to Rp33.8 trillion.

This was realized because it was supported by the growth of demand deposits and savings (CASA), reduced cost of funds (CoF) and decreased operating costs. Then from the funding side, BCA also recorded good performance throughout the first quarter to the third quarter of this year, namely CASA grew 16.1 percent (yoy) to reach Rp596.6 trillion.

CASA which grew 16.1 percent (yoy) resulted in total third party funds with a growth of 14.3 percent (yoy) to IDR 780.7 trillion and time deposits increasing by 8.8 percent (yoy) to reach IDR 184.1 trillion.

The growth of third party funds has driven the growth of BCA's total assets, which penetrated the level up to Rp. 1,003.6 trillion or an increase of 12.3 percent (yoy).

Meanwhile, BCA's transaction banking franchise, which is supported by a large number of customers and the development of various digital services, has also strengthened CASA's contribution as the bank's core fund by contributing 76.4 percent of total third party funds.

BCA processed around 33 million transactions per day during the first nine months of this year, an increase from 26 million transactions per day in the same period the previous year.

"We continue to see rapid developments in the number of transactions via mobile and internet banking," said Jahja.

Furthermore, BCA recorded a net interest income growth of 9 percent (yoy) to Rp40.8 trillion during the first quarter to the third quarter of this year, the majority of which was supported by low interest expenses.

"Income other than interest was recorded at Rp. 15.1 trillion, an increase of 3 percent (yoy)," he said.

Total operating income for the first nine months of 2020 reached IDR55.9 trillion or grew 7.3 percent (yoy), while operating expenses were IDR22.1 trillion or decreased by IDR216 billion compared to last year.

In line with this, the Pre-Provision Operating Profit (PPOP) increased by Rp. 4 trillion or 13.5 percent to Rp. 33.8 trillion, thus providing a buffer against increased provision costs.

BCA booked an allowance fee of Rp9.1 trillion, an increase of up to 160.6 percent (yoy), namely Rp5.6 trillion, in line with the increased risk of a decline in credit quality.

BCA's financial ratios are in good shape amid the pandemic crisis, which is reflected in the capital adequacy ratio (CAR) of 24.7 percent in September 2020 or higher than the regulator's stipulation and an LDR ratio of 69.6 percent.

The ratio of non-performing loans (NPL) was maintained at the level of 1.9 percent compared to last year's 1.6 percent, the ratio of return on assets (ROA) was recorded at 3.4 percent, and the ratio of return on equity (ROE) was 16.9 percent .