BCA Profit Up 14 Percent in 2016
Jakarta. Bank Central Asia, Indonesia's biggest lender by market value, booked a 14 percent increase in net income to Rp 20.6 trillion, or $1.5 billion, last year on the back of strong revenues from loan and transactions fees as well as renewed ability to control operational costs.
BCA's net interest income, or the income from lending money to customers after deducting the costs of paying its depositors, increased by 12 percent to Rp 40.2 trillion as of the end of December.
Meanwhile, the lender's non-interest income, which came from transaction fees, commissions and other gains, increased by 13 percent to Rp 13.6 trillion at the same period, Jahja Setiaatmadja, BCA president director, said on Monday (13/07).
The lender has reigned in spending by putting off branch expansion and instead focusing on electronic banking. That resulted in operational expenses growing at a slower pace of 7.7 percent to Rp 23.4 trillion.
The listed lender said its total outstanding loans increased by 7.3 percent to Rp 416 trillion while its gross non-performing loans (NPL) rose to 1.3 percent of the lender's total outstanding loan from 0.7 percent a year earlier.
Despite the increase, Jahja said BCA's NPL gross is still lower compared to the industry's average of 2.9 percent. He also said that the lender will be cautious over the possibility of a higher NPL this year due to sluggish economic growth.
BCA's NPL mostly came from companies exposed by falling commodity prices, such as those in the coal-transporting business.
On the funding side, BCA booked Rp 530.1 trillion in third-party funds last year – consisting of savings, current-account and term deposits – up 12 percent from 2015.
BCA's third-party funds got a welcome boost from the government's tax amnesty program last year. It received Rp 58 trillion from the amnesty program but only Rp 11 trillion remained in the bank by the end of December.
BCA's total assets reached Rp 676.7 trillion in value in 2016, up 14 percent from 2015.
Tags: Keywords: