JAKARTA (TheInsiderStories) - PT Bank Central Asia Tbk (IDX: BBCA) and its subsidiaries recorded solid financial performance for the full year 2016, closing the year with an increase in net profit of 14.4% to Rp 20.6 trillion compared to previous year of Rp 18.0 trillion.
With the net profit rise, BCA’s net profit is now higher than Bank Mandiri’s net profit, which reached Rp13.07 trillion in 2016, down from Rp20.10 trillion in previous year. BRI remains the largest bank in term of net profit, which stood at Rp25.75 trillion in 2016. BNI is closing the gap after recording net profit of Rp10.78 trillion in 2016, up from Rp8.63 trillion in 2015.
The bank said its net interest income increased by 12.0% to Rp 40.2 trillion in 2016 from Rp 35.9 trillion in 2015, supported by a low cost of funds, a quality loan portfolio and solid earning assets growth. In addition, its non-interest income grew by 13.2% to Rp 13.6 trillion at the end of 2016.
The Bank’s operating income as a total of net interest income and non-interest income grew 12.3% to Rp 53.8 trillion in 2016.
“BCA’s performance in 2016 was achieved through initiatives to capture business opportunities and ongoing efforts to optimize operational efficiency, enabling the Bank to close the year with higher net profit growth than the year before,” BCA’s President Director Jahja Setiaatmadja, said.
He said deposits from current accounts and savings accounts (CASA) continued to grow supported by the Bank’s reliable transaction banking services. The tax amnesty in semester II 2016 also contributed to the increase in CASA funds.
“During a modest loan demand environment, BCA worked to optimize lending opportunities across all segments and to offer competitive interest rates to the Bank’s borrowing customers,” he noted.
In 2016 the loan portfolio increased by 7.3% to Rp 416 trillion led by corporate and consumer loans. The Bank saw high corporate loan disbursement in the last quarter 2016 due to high seasonal demand at year end.
Corporate loans grew 9.6% to Rp 154.9 at the end of 2016. Consumer loans increased by 9.0% to Rp 109.6 trillion supported by competitive consumer loan products, particularly mortgages, and four-wheeler financing.
Mortgages increased 7.6% to Rp 64.0 trillion, while vehicle loans rose 10.1% to Rp 34.8 trillion in 2016. In the same period, credit card outstanding balances grew 13.7% to Rp 10.8 trillion. Meanwhile, commercial and SME loans increased by 3.8% to Rp 151.9 trillion. (*)