BCA Offically Buys Bank Royal Shares for US$71.42 Million
Board Directors of PT Bank Central Asia Tbk - Photo by the Bank.

JAKARTA (TheInsiderStories) – Indonesia’s largest private lender PT Bank Central Asia Tbk (IDX: BBCA) will distribute interim dividends for the fiscal year 2019, the management announced today (11/28). The bank will distribute interim dividends of Rp100 (US$0.007) a share from profits until September 2019.

“Based on BBCA’ annual general meeting of shareholders on April 11, 2019 and the decision of the board of directors on November 27, 2019, and the approval of the board of commissioners, it is hereby notified to BBCA shareholders that the bank will carry out a cash interim dividend of Rp100 a share for the 2019 fiscal year, period until September 2019,” the company said in an announcement.

It said the dividend amount is 11.78 percent of BBCA‘s earnings per share in September 2019, which is Rp849 a share. With the amount of the dividend payout ratio, BBCA spreads an interim dividend of Rp2.46 trillion from total net profit until the third quarter which reached Rp20.92 trillion.

The bank schedules cum dividends on the regular market and negotiates on 5 December 2019, ex-dividends on the regular market and negotiations on 6 December 2019, cum dividends on the cash market on 9 December 2019, ex-dividends on the cash market on 10 December 2019, recording date on 9 December 2019, dividend payments on December 20 2019.

While the dividend yield is 0.32 percent with the BBCA share price today at 9.44 local time at Rp31,300 a share.

Last month, the bank announced to cooperate with Chinese financial technology (FinTech) companies, Alipay and WeChat Pay. The bank’s president director Jahja Setiaatmadja explained, now, the third parties in the process of finalizing the business processes and schemes.

While, Vera Eve Lim, the finance director, the finance director stated, the company will provide electronic data capture (EDC) to manage and process the transactions. The machine will be placed in merchants around tourist objects that Chinese tourists frequently visited, she adds.

Since early 2019, the bank has announced looking at digital companies as part of the business expansion and to tap the growing market. Joined with its subsidiary PT BCA Finance, the bank has entered into a sale and purchase agreement to buy all of PT Bank Royal Indonesia shares with valued Rp1 trillion.

Setiaatmadja said the new subsidiary will transform become a P2P lending provider. To add the service, BBCA also looking at other digital companies or in cooperation scheme.

In the third quarter (3Q) of 2019, the lender recorded a net profit of Rp20.9 trillion, an increase of 13 percent on an annual basis (YoY). In line with the net profit growth, net interest income also rose 12.2 percent to Rp37.4 trillion from a year ago.

At the same time, the loan disbursement increased by 10.9 percent in the 3Q of 2019. The bank was able to record deposits growth of 10.4 percent to Rp683.1 trillion.

The lender also maintained a solid financial ratio. Capital adequacy ratio (CAR) and loan to deposit ratio (LDR) recorded at 23.8 percent and 80.6 percent, respectively. While the return to assets (ROA) recorded at 4 percent.

Alipay and WeChat Pay have been operating in the country and become illegal caused not to meet the central bank’s requirement. Bank Indonesia (BI) has put a 49 percent limit on foreign ownership in companies that offer e-money services in a bid to better regulate such services amid growing interest in financial technology.

The limit was set by the central bank to all electronic money issuer companies, both operating and newly handing permits. The rules said, every company offering payment in electronic money services also must obtain a permit from BI.

Beside explore with BBCA, both digital players also explore the cooperation with PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Mandiri Tbk (IDX: BMRI). The partnering has the potential to attract revenues of around Rp2 trillion from Chinese tourists who visit the country.

US$1: Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com