JAKARTA (TheInsiderStories) - One of the largest bank in Indonesia, PT Bank Central Asia Tbk (IDX: BBCA), will distribute a cash dividend Rp530 a share or in total Rp13.01 trillion (US$903.33 million), the management announced on Monday (03/29). The amount represented 48 percent of the total net profit of the lender in 2020 amounted to Rp27.1 trillion.
The cash dividend included an interim dividend of Rp98 per share which was distributed on Dec. 22, 2020. During last year, the net profit of the lender dropped 5.14 percent due to the weak economic condition in the midst of the COVID-19 outbreak. And the net interest income rose 7.3 percent to Rp54.5 trillion from 2019.
While, non-interest income decreased slightly by 0.5 percent to Rp20.2 trillion, operating income rose 5,1 percent to Rp74.8 trillion, and operating expenses were recorded at Rp.29.3 trillion, or 3.1 percent lower than previous year (YoY) , due to partially obstructed operations of Bank Central Asia during the pandemic.
Total outstanding loans only decreased by 2.5 percent compare to last year to Rp588.7 trillion. Despite facing a number of challenges, the bank still managed a healthy third party fund, grew 21.0 percent to Rp643.9 trillion. The number of transactions via mobile and internet banking continues to grow rapidly, amounting to 50.7 percent in annual basis.
In 2020, Bank Central Asia processed more than 30 million transactions per day on average, or an increase of 18.3 percent from 2019. The net interest income rose 7.3 percent to Rp54.5 trillion, non-interest income decreased by 0.5 percent to Rp20.2 trillion.
In total, operating income was recorded at Rp74.8 trillion, or an increase of 5.1 percent and operating expenses were recorded at Rp.29.3 trillion, or 3.1 percent lower than 2019, due to partially obstructed operations during the pandemic.
The ratios of Bank Central Asia also looked healthy. The capital adequacy ratio at 25.8 percent, loan to deposit ratio maintained at 65.8 percent, and non-performing loans was at a tolerable level of 1.8 percent. In addition, the return on assets was at 3.3 percent and the return on equity ratio of 16.5 percent in 2020.
President director of the issuer, Jahja Setiaatmadja, is targeting the loans to growth around 4 to 6 percent in 2021. While, finance director, Vera Eve Lim, adds, the targets could be realized in line with the national economic recovery.
To support the target, he largest bank in term of market capitalization in Indonesia, to launches Bank Digital BCA as the transformation of PT Bank Royal Indonesia which has been acquired in 2019. Lim conveyed the digital bank had received approval from the Financial Services Authority and was initially to introduced in the second half of 2020 but was plagued by a pandemic.
To support the new businesses, the lender has allocated Rp2 trillion fresh capital to the subsidiaries. Beside for the digital businesses, around Rp1 trillion will be distributes to develop the sharia banking business line through PT BCA Syariah and another Rp1 trillion for Bank Royal to enter commercial bank business group II. After the injection, the unit’ capital will raised to Rp1.3 trillion from initially was Rp319.71 billion.
Setiaatmadja revealed Bank Digital BCA will work on the micro, small and medium enterprises segment because these sectors have a very open market niche. The bank owned by Djarum Group took over shares of Bank Royal in November 2019 with valued Rp988,05 billion.
US$1: Rp14,400
Written by Editorial Staff, Email: theinsiderstories@gmail.com
