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RETAIL BANKING | Staff Reporter, Indonesia

Bank Central Asia's net profit jumped 10.9% to $1.84b in 2018

Loan growth hit 15.1% amidst strong corporate demand.

PT Bank Central Asia’s (BCA) net profit rose 10.9% YoY to $1.84b (RP25.9t) in 2018 from $1.6b (RP25.9t) in 2017, an announcement revealed. Operating income of the bank also climbed 10.6% to $4.43b (RP63t) from $4b in 2017.

Also read: Indonesia's Islamic banks narrow earnings gap with conventional lenders

The bank noted that their net interest income increased 8.3% to US$3.18b (RP45.3t) whilst non-interest income jumped 17% to $1.24b (RP17.7t) in 2018.

Meanwhile, BCA’s loan portfolio edged up 15.1% to $37b (RP538t) buoyed by strong business loan and demand. The bank noted that corporate loans surged 20.4% to $14.99b (RP213.3t) whilst commercial and SME loans grew 13.4% to $13b (RP183.8t).

Consumer loans increased 9.7% YoY to $9.9b (RP140.8t) despite the challenge of rising interest rates. Within the consumer segment, mortgages grew 12% to $6.18b (RP87.9t) whilst vehicle loans increased 4.4% to $2.8b (RP4t) in 2018.

BCA also revealed that non-performing loan (NPL) ratio came in at 1.4% whilst the Capital Adequacy Ratio (CAR) and the Loan to Funding Ratio (LFR) were recorded at healthy levels 23.4% and 81.6% respectively.

“Our liquidity is supported by sticky current accounts and saving accounts (CASA) funds, backed by continuous development of our transaction banking franchise. We emphasize prudent lending to capture opportunities that arose from higher loan demand throughout the year,” BCA president director, Jahja Setiaatmadja, said.

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