This is how Bank Central Asia sustained a decade-long record of profitability

Having the lowest cost of deposits is an advantage.

According to Barclays, Bank Central Asia (BCA) has a decade-long record of consistent growth and profitability. BCA’s low-cost deposit franchise and transaction banking capabilities enable it to sustain strong profitability while lending relatively conservatively. 

Here's more from Barclays:

Decade-long record of consistent growth and profitability
For the past decade, BCA has consistently delivered loan growth in line with or above industry growth while maintaining ROA above 2.3% and ROE above 23%.

Low-cost deposit franchise and transaction capabilities allow it to sustain profitability while avoiding risky lending
BCA has the lowest cost of deposits among the Indonesian banks we cover. This is because of its strong CASA franchise. Its CASA ratio (79.5% in Sep-12) is the highest among peers. In fact, its CASA deposit base (Rp284tn in Sep-12) is larger than those of Bank Mandiri (Rp272tn) and BRI (Rp227tn) although both banks are larger than BCA in terms of overall balance sheet size.

This low-cost deposit franchise allows BCA to lend conservatively. BCA’s loan yields are the lowest among peers. Consequently, BCA’s credit costs are low – 90bps over the past seven years. This is despite the fact that BCA’s coverage ratio over this period has increased from 146% to 386%.

It should be noted that conservative lending by the bank has not meant restricting itself to the large corporate segment. In fact, BCA has significant exposure to the commercial and SME segments and is also expanding in the mortgage segment.

BCA has strong transaction banking capabilities. These support both its CASA franchise and fee income generation. Its fee and commission income (1.3% of average assets in 2011) is among the strongest among the Indonesian banks we cover.

Liquid balance sheet positioned to benefit from higher rates
BCA’s balance sheet is very liquid. It has the lowest LDR in the system. This is despite the fact that its deposit base has the least reliance on term deposits (comprising mostly CASA). In fact, BCA is the only bank in our coverage that funds its entire loan book with CASA deposits. If rates were to rise, BCA would benefit from higher returns on its surplus liquidity.