Bank Central Asia (BBCA) Profit Soars 19.4% to IDR 48.6 Trillion in 2023

January 25, 2024, 05.22 PM  | Reporter: Nurtiandriyani Simamora
Bank Central Asia (BBCA) Profit Soars 19.4% to IDR 48.6 Trillion in 2023

ILUSTRASI. PT Bank Central Asia Tbk (BBCA) and its subsidiaries successfully recorded a net profit of IDR 48.6 trillion as of December 2023.

BANK - JAKARTA. PT Bank Central Asia Tbk (BBCA) and its subsidiaries successfully recorded a net profit of IDR 48.6 trillion as of December 2023. BBCA's profit soared by 19.4% year on year (YoY).

This achievement was supported by an increase in BCA's net interest income (NII), which grew by 17.5% YoY to IDR 75.4 trillion throughout 2023.

Meanwhile, non-interest income grew by 5.5% YoY to IDR 23.9 trillion, making the total operating income recorded at IDR 99.3 trillion, or up by 14.4% YoY.

In line with this, BCA recorded its business performance with an increase in credit disbursement as of December 2023, which rose by 13.9% YoY to IDR 810.4 trillion.

This credit growth was driven by increases in various credit segments, including corporate credit which grew by 15.0% YoY to IDR 368.7 trillion, while commercial credit rose by 7.5% YoY to IDR 126.8 trillion.

Since breaking through the IDR 100 trillion level in May 2023, SME credit has continued to grow, reaching IDR 107.9 trillion at the end of 2023, or up by 16.0% YoY. This SME credit growth became the highest in the business credit segment.

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Along with the success of the BCA Expo twice, new bookings for mortgages and vehicle loans increased by 2.3 and 2.6 times respectively, in the last three years.

This achievement also drove the outstanding mortgage balance to increase by 11.7% YoY to IDR 121.8 trillion, and vehicle loans rose by 20.8% YoY to IDR 56.9 trillion as of December 2023.

The balance of outstanding personal loans also grew by 21.7% YoY to IDR 16.7 trillion, so the total consumer credit portfolio rose by 14.8% YoY to IDR 198.8 trillion. In total, BCA's credit rose by 13.9% YoY to IDR 810.4 trillion.

BCA's credit growth was followed by a consistent improvement in loan quality. The loan at risk (LAR) ratio improved to 6.9% at the end of 2023, compared to 10.4% in 2022. Meanwhile, the non-performing loan (NPL) ratio remained at 1.9% in 2023.

"We are grateful for the trust of our customers and the support of the government and authorities, so that BCA was able to get through 2023 with solid performance. Despite challenges such as global inflationary pressure and increased geopolitical tension, we see the domestic economy remains resilient and stable," said the President Director of PT Bank Central Asia Tbk, Jahja Setiaatmadja, on Thursday (25/1).

Credit disbursement to sustainable sectors grew by 10.6% YoY to IDR 202.6 trillion as of December 2023, above the growth target of 9%, and contributed 24.8% to BCA's total financing portfolio.

This achievement was partly supported by electric vehicle loans, which increased nearly fourfold annually, reaching IDR 1.3 trillion.

As a form of diversification of sustainable financing, BCA invested in green bonds/sukuk amounting to IDR 1.6 trillion, or up by 332% YoY.

"Throughout 2023, BCA is estimated to have reduced emissions by about 3,000 tons of CO2 through the processing of 588 tons of operational waste, digital banking, to the implementation of environmentally friendly buildings," said Jahja.

On the funding side, the total third-party funds (DPK) increased by 6.0% YoY to IDR 1,102 trillion, thus driving an increase in BCA's total assets by 7.1% YoY to IDR 1,408 trillion. Current and savings accounts (CASA) contributed about 80% of the total DPK.

BCA continuously invests to strengthen the hybrid banking ecosystem, from mobile and internet banking channels, point of sales, branch offices, ATMs, to contact centers.

This strategic investment is made to provide quality services for various types of segments and customer needs.

In 2023, the total volume of transactions processed by BCA increased by 25.1% YoY to 30.1 billion transactions. The mobile banking channel recorded the highest increase in transaction volume, up by 41.6% YoY. Then, the number of customers reached 31 million as of December 2023, doubling in the last five years.

Regarding myBCA, which is prepared to be the integrated service application of the future, throughout 2023, BCA has added a number of features to enhance customer transaction comfort.

These innovations include control of debit and credit cards, biometric login, ease of investing through the Welma feature, to BCA's Paylater. Most recently, the myBCA application has been equipped with features for foreign exchange transfers to other banks, vehicle tax payments, purchase of e-SIM packages, financial notes and transaction notifications, setting up QRIS funding sources, to the QRIS Customer Presented Mode feature.

BCA also won the prestigious title of "World’s Most Trustworthy Bank" from Newsweek magazine in collaboration with global data research company Statista.

"Supported by adequate liquidity, BCA is optimistic to always support economic growth through credit disbursement to various sectors, and to move prudently in 2024. We continue to expand the transaction ecosystem, and innovate to provide a safe and reliable banking platform for customers," said Jahja.

Editor: Khomarul Hidayat

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