Bank Central Asia is one of the corporate disclosure champions in Southeast Asia, according to FTI Consulting's Asean Disclosure Index 2018 report released on Sept. 28. (Reuters Photo/Darren Whiteside)

BCA's Net Income Rises 11% Year-on-Year in Q1


APRIL 27, 2016

Jakarta. Bank Central Asia, Indonesia's third-biggest bank by assets, saw its net income rise 11 percent to Rp 4.5 trillion ($342 million) in the first quarter of this year from the same period last year on the back of strong loan growth and income from non-interest businesses.

BCA president director Jahja Setiaatmadja said on Wednesday (27/04) that the lender's net interest income – income from lending money to customers after deducting the costs of paying its depositors – rose 15 percent to Rp 9.8 trillion.

The listed lender is controlled by the Djarum Group, a conglomerate with its main business in the tobacco industry.

Meanwhile, non-interest income – including transaction fees, commissions and other gains such as from derivative investments, grew 24 percent to Rp 3 trillion.

Income from fees and commissions, which made up the bulk of the lender's non-interest income, increased 13.5 percent to Rp 2.2 trillion.

In a filing to the Indonesia Stock Exchange, BCA said its total outstanding loans increased 11 percent to Rp 373.7 trillion. Its non-performing loans, however, grew to 1.1 percent from 0.7 percent.

President director Jahja, in defense of the rise in non-performing loans, said the higher number was caused "by a single corporate customer with a Rp 500 billion loan, who could not pay its debts."

However, he declined to name the company.

Jahja predicted that the number of non-performing loans would to keep rising in the coming months, on the back of an uneasy business environment, until it is likely to slow down in September.

Still, the bank's net interest margin – an indicator of a lender's effectiveness in its investment decisions – increased by 0.5 percent to 7 percent as of the end of March 2016.

On the funding side, BCA booked Rp 470.4 trillion in third-party funds – consisting of savings, current-account and term deposits – up 5.7 percent from a year earlier.

BCA's total asset reached Rp 603.4 trillion, up 8.2 percent from the same period a year ago.