JAKARTA, NETRALNEWS.COM - Listed private banking company Bank Central Asia (BBCA.JK) has obtained consolidated net profit of IDR16.8 trillion as of the third quarter of 2017. The consolidated net profit for the period is higher by 11.3 percent year-on-year (YOY) from IDR15.1 trillion in the same period last year.
The increase in net profit is attributed to the growth in lending portfolio that is kept in double digits by 13.9 percent, and also the rise in non-interest income by 10.6 percent (yoy).
"We manage cautiously as well as an important part in maintaining positive profit growth," said Jahja Setiaatmadja, President Director of Bank Central Asia, also known as BCA, in Jakarta on Thursday (26/10/2017).
BCA's operating income grew 5.2 percent until September 2017 or to IDR41.7 trillion, with details of interest income of IDR3097 trillion, and non-interest amounting to IDR10.7 trillion.
In terms of intermediation, total lending reached IDR440 trillion at the end of September 2017, up 13.9 percent.
Despite credit growth of double digits as of September 2017, Jahja still sets a moderate target for year-end loan growth of nine percent. The reason is, Jahja sees, demand for credit that has not been so stretched, although it is predicted to keep growing in the fourth quarter of 2017.
As of September 2017, corporate loans became BCA's intermediary backers with a realization of IDR161.5 trillion, up 21.2 percent. Consumer loans grew 20.6 percent to IDR128.3 trillion, while commercial and SME loans rose 2.4 percent to IDR150 trillion.
"In the consumer loan portfolio, Housing Loans (KPR) recorded a growth of 26.8 percent to IDR78.8 trillion, thanks to the offer of products with certain structures and competitive interest rates," Jahja said.
Meanwhile, in other consumer lines, Motor Vehicle Loans (KKB) and credit cards grew 11.4 percent to IDR38.5 trillion and 13.4 percent to IDR11 trillion, respectively.
BCA's credit quality is reflected in its NPL ratio of 1.5 percent, or equal to the third quarter of last year. The ratio of credit loss reserves of 190.8 percent.
Jahja sees BCA not experiencing problems in liquidity. In fact, BCA looks very careful in channeling credit because the Loan to Fund Ratio (LFR) ratio is 74.7 percent, under the terms of Bank Indonesia of 78-92 percent.
The liquidity is supported by third party funds which increased 16.5 percent to IDR574.4 trillion. Low-cost fund (CASA) still dominates as much as 74.5 percent of total deposits, by registering IDR428 trillion. Meanwhile, deposits rose 36 percent to IDR146.4 trillion.
With the performance of deposits and credit, BCA's total assets increased by 12.1 percent from IDR738.2 trillion to IDR739.88 trillion.