BCA's Profit IDR 27 T, Bank Owned By Conglomerate Hartono Brothers Ready To Distribute Dividends Next Week, Who Will Get It?

Image of money illustration by Mohamad Trilaksono from Pixabay

JAKARTA - PT. Bank Central Asia Tbk. (BCA) will decide on the distribution of dividends from the company's net profit in 2020 at the Annual General Meeting of Shareholders (GMS). The GMS will be held on Monday, 29 March.

Based on the disclosure of information submitted to the Indonesia Stock Exchange (IDX), the largest private bank in Indonesia said there were seven agenda items of the Annual GMS, including the decision to distribute dividends as one of the agenda points.

BCA is also known to use 2020 net income for the reserve sector to anticipate future financial performance.

"The remaining net profit which is not determined for use will be recorded as retained earnings," said BCA's announcement as quoted by VOI, Sunday, March 28.

For information, the bank with the BBCA ticker earned a net profit of IDR 27.1 trillion in the 2020 financial period.

Meanwhile, the company has distributed interim dividends in December 2020 with a value of IDR 98 per share.

For your information, BCA is known as one of the most generous banks in matters of distributing funds to shareholders. This can be seen from the amount of the dividend payout ratio which always increases from year to year.

For example, in 2019 the dividend payout ratio was recorded at 47.9 percent of net income or the equivalent of IDR 13.6 trillion.

This number is higher than the ratio in 2018 and 2017 with 32.4 percent (IDR 8.3 trillion) and 27 percent (IDR 6.2 trillion), respectively.

The announcement also revealed that this time the dividend distribution pays close attention to the capital aspect to maintain the company's solid financial performance.

Just so you know, BCA is a financial services institution affiliated with the Djarum group through PT. Dwimuria Investama Andalan which controls the company's shares with a composition of 51 percent.

PT. Dwimuria Investama Andalan itself was founded by conglomerate Robert Budi Hartono and Bambang Hartono who are owners of the Djarum group of cigarette companies.