BCA Reaches IDR 27.1 Trillion Profits In 2020

BCA Building. (Angga Nugraha / VOI)

JAKARTA - In the midst of the COVID-19 pandemic, PT. Bank Central Asia Tbk (BCA) recorded a decrease in net profit before tax by 5 percent (year on year/yoy) to IDR 27.1 trillion in 2020. This achievement is lower than that in 2019 with IDR 28.6 trillion.

Profit gains were supported by increased liquidity, lower cost of funds, and a slowdown in operating spending.

BCA President Director Jahja Setiaatmadja said that the decline in profits was a result of the company's strategy to maintain credit quality in a safe condition.

"This is due to higher reserve costs to anticipate a potential decline in asset quality," he said Monday, February 8.

In addition, Jahja also revealed that the impact of the pandemic has a major impact on the company's business, especially in terms of the intermediation function.

In his presentation, at the end of December 2020, BCA's total credit had decreased by 2.1 percent to IDR 575.6 trillion. Meanwhile, on a consolidated basis, total credit was recorded at IDR 588.7 trillion or a decrease of 2.5 percent.

In detail, corporate credit increased by 7.7 percent to IDR 255.1 trillion, commercial and SME loans decreased by 7.9 percent to IDR 186.8 trillion, and consumer credit contracted the most by 10.8 percent to IDR 141.2 trillion.

"The decline in outstanding in the consumer segment was caused by a higher repayment rate compared to the provision of new credit facilities," he said.

Then, the bank with the issuer code BBCA also reported having booked a credit restructuring of IDR 104.2 trillion or about 18 percent of the total credit originating from around 100 thousand customers.

Furthermore, from the funding side, BCA managed to record a healthy third party fund performance, in which the current account and savings account (CASA) grew by 21.0 percent or equivalent to IDR 643.9 trillion. In total, third party funds rose 19.3 percent to IDR 840.8 trillion throughout 2020.

The liquidity flood had an impact on asset accumulation. It was stated that BCA's assets were able to penetrate one thousand trillion rupiah for the first time, reaching IDR 1,075.6 trillion or an increase of 17.0 percent yoy.

Then from several aspects of financial ratios, the capital adequacy ratio (CAR) was recorded at 25.8 percent, a loan to deposit ratio (LDR) of 65.8 percent, and a non-performing loan (NPL) ratio of 1.8 percent.

Particularly for NPL, the ratio last year was higher than 2019 as a result of credit relaxation efforts through restructuring.

In addition, the return on assets (ROA) ratio was recorded at 3.3 percent, and the return on equity (ROE) ratio was 16.5 percent throughout.

"All the challenges in 2020 have proven the importance of a banking focus and strategy to develop a digital platform," concluded Jahja.