BCA had total assets of Rp919.0 trillion at end 2019, growing 11.4% from Rp824.8 trillion in 2018. Loans posted the largest increase at Rp48.8 trillion or 9.1% and contributed 51.8% to total asset growth.
Total Assets (in billion Rupiah)
2019 2018 2017 Increase / (decrease)
2019
Increase / (decrease) 2018 Nominal
(%) to Total
Assets
Nominal
(%) to Total
Assets
Nominal
(%) to Total
Assets
Nominal % Nominal %
Cash and Current Accounts with Bank Indonesia
73,326 8.0% 65,240 7.9% 60,227 8.0% 8,086 12.4% 5,013 8.3%
Current Accounts with Other Banks
10,522 1.1% 8,498 1.0% 9,094 1.2% 2,024 23.8% (596) -6.6%
Placement with Bank Indonesia & Other Banks
30,948 3.4% 31,683 3.8% 18,969 2.5% (735) -2.3% 12,714 67.0%
Securities 152,559 16.6% 118,294 14.3% 140,350 18.7% 34,265 29.0% (22,056) -15.7%
Investment Securities 142,983 15.6% 109,081 13.2% 131,091 17.5% 33,902 31.1% (22,010) -16.8%
Securities Purchased under Agreements to Resell
9,576 1.0% 9,213 1.1% 9,259 1.2% 363 4.0% (46) -0.5%
Loans - gross 586,940 63.9% 538,100 65.2% 467,509 62.3% 48,840 9.1% 70,591 15.1%
Allowance for Impairment Losses on Loans (-/-)
14,906 -1.6% 13,569 -1.6% 13,244 -1.8% 1,337 9.9% 325 2.5%
Fixed Assets gross 20,852 2.2% 19,337 2.4% 16,869 2.3% 1,515 7.8% 2,468 14.6%
Others 58,748 6.4% 57,205 7.0% 50,546 6.8% 1,543 2.7% 6,659 13.2%
Total Assets 918,989 100.0% 824,788 100.0% 750,320 100.0% 94,201 11.4% 74,468 9.9%
Most of the remaining assets were placed in marketable securities in the form of government bonds and short- term instruments, which are both liquid and low risk.
The earning assets portfolio represented 89.1% of total assets, posting an increase of 11.5% to Rp818.7 trillion compared with a year before.
CASH, CURRENT ACCOUNTS AT BANK INDONESIA AND CURRENT ACCOUNTS AT OTHER BANKS Cash and current accounts at Bank Indonesia were Rp73.3 trillion at the end of 2019, expanding by 12.4% from the previous year. Cash grew 17.2% to Rp25.4 trillion and triggered an increase in the ratio of cash to total third party funds to 3.6%. Current accounts at Bank Indonesia reached Rp47.9 trillion, an increase of 10.0%, equivalent to Rp4.4 trillion from a year before, in line with the growth in third party funds.
Current accounts at other banks were Rp10.5 trillion, growing by 23.8%, with the majority placed in reputable banks overseas.
PLACEMENT WITH BANK INDONESIA AND OTHER BANKS
Placement at Bank Indonesia and other banks reached Rp30.9 trillion, relatively stable compared with Rp31.7 trillion in 2018. The majority of the placements was in Bank Indonesia term deposits as one of the short term instruments available in the market (less than three month placement).
SECURITIES (in billion Rupiah)
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Nominal % Nominal %
Investment Securities 142,983 109,081 131,091 33,902 31.1% (22,010) -16.8%
SBBI, SDBI & SBI Sharia 30,287 20,153 35,587 10,134 50.3% (15,434) -43.4%
Government Bonds 80,174 58,327 70,426 21,847 37.5% (12,099) -17.2%
Other Securities 32,522 30,601 25,078 1,921 6.3% 5,523 22.0%
Securities Purchased under Agreements to Resell
9,576 9,213 9,259 363 3.9% (46) -0.5%
Total 152,559 118,294 140,350 34,265 29.0% (22,056) -15.7%
BCA’s securities portfolio was Rp152.6 trillion, growing Rp34.3 trillion or 29.0% from a year before, compared with a decline of 15.7% in 2018. Such expansion was consistent with the increase of excess liquidity resulting from slower credit demand.
The majority of securities at Rp143.0 trillion were in the investment securities category, dominated by government bonds with a less than five-year tenor amounting to Rp80.2 trillion. Government bonds grew 37.5% from a year before and accounted for 52.6% of total securities.
BCA always takes into account market conditions for government bond placements. At the beginning of the year, the Bank placed its excess liquidity in government bonds to anticipate lower interest rates, and started to gradually reinvest the matured bonds taking into account the bonds’ yield. All BCA’s government bonds carried fixed interest rates.
Securities Purchased under Agreements to Resell (reverse repo) was relatively stable at Rp9.6 trillion, increasing by 4.0% from a year before. Placement in reverse repo was short term in nature, mostly in instruments with government bonds as the underlying assets.
LOANS
Loans were Rp586.9 trillion, growing by 9.1% compared with a year before. This was underpinned by the demand for investment and working capital loans from the corporate, commercial and SME segments.
Growth of Loan Portfolio
(in trillion Rupiah)
2019 2017 2018
538.1 467.5
586.9
Investment loans grew stronger than working capital loans, by 16.7% and 9.0%, respectively. Investment loan growth was particularly supported by infrastructure loans, which increased by 33.9% compared with the previous year, thus representing 6.8% of BCA’s total loans.
Whilst registering solid loan expansion in 2019, overall loan growth was lower than in the previous year of 15.1%. This was in line with the moderate macroeconomic conditions throughout the year. Consumer lending, especially mortgage and vehicle loans, grew marginally despite lower interest rates. The sluggish automotive industry saw weaker demand, partly caused by lifestyle changes and the increasing use of public transportation.
Overall, BCA’s loan market share reached 10.4%, an increase from 10.2% in 2018. This was consistent with the Bank’s higher loan growth compared to the industry average.
Loans Based on Segment
Loan Composition based on Segment (non consolidated, in billion Rupiah)
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Nominal % Nominal %
Corporate 238,471 213,356 177,277 25,115 11.8% 36.079 20.4%
Commercial & SME 214,203 189,960 164,661 24,243 12.8% 25.299 15.4%
Consumer 132,631 131,671 122,855 960 0.7% 8.816 7.2%
Mortgage 82,056 78,780 73,025 3,276 4.2% 5.755 7.9%
Vehicle 36,469 39,998 38,302 (3,529) -8.8% 1.696 4.4%
Credit Card 14,106 12,893 11,528 1,213 9.4% 1.365 11.8%
Employee 2,946 2,927 2,827 19 0.6% 100 3.5%
Total 588,251 537,914 467,620 50,337 9.4% 70.294 15.0%
The Bank recorded positive loan growth in all business segments. The corporate segment accounted for 40.5%
of total BCA loans, with total exposure of Rp238.5 trillion, growing by 11.8% from Rp213.4 trillion in 2018.
Corporate growth was particularly due to the increase in loans for the financial service and infrastructure sectors such as electricity, toll road and telecommunication projects. Loans in the commercial and SME segment grew by 12.8% to Rp214.2 trillion, and represented 36.4% of total loans. This was due to the optimization of commercial business centers and SME centers in large cities in Indonesia. The growth in working capital loans was the largest contributor to growth in the commercial and SME segment, particularly, chemical materials &
plastic, the building and construction and distribution sector, retailers & department stores .
Consumer loans accounted for 22.5% of total loans at Rp132.6 trillion, a slight increase from last year’s Rp131.7 trillion. Loan demand for vehicles and mortgages were
the most affected by macro conditions. Mortgage growth decelerated from 7.9% in 2018 to 4.2% in 2019, affected by low in new bookings for the past two years.
Vehicle loans decreased significantly by 8.8% compared with positive growth of 4.4% the previous year. Lower automotive sales put pressure on vehicle loan growth during the year. BCA actively conducted various events such as BCA Expoversary, offering various attractive promotions and competitive rates, as initiatives to support consumer loans.
Loans Based on Purpose
Working capital credit was the largest contributor to loans based on purpose at 47.4% of BCA’s total loans.
Investment and consumer loans accounted for 29.5% and 22.6% of total loans, respectively.
Loan growth was particularly supported by rising investment loans, which increased by Rp24.8 trillion, growing by 16.7% from Rp148.2 trillion in 2018, particularly from the infrastructure sector in the industry of power plants and toll roads. Loans to the infrastructure sector were a low proportion of 6.8% of total loans. Working capital loans expanded by 9.0% to Rp278.4 trillion, particularly supported by the growth in financial service sector and consumer financing.
Loan Composition based on Type of Loan (in billion Rupiah)
2019 2018 2017 Increase / (decrease)
2019
Increase / (decrease) 2018 Nominal Composition Nominal Composition Nominal Composition Nominal % Nominal %
Working Capital 278,378 47.4% 255,323 47.5% 220,604 47.2% 23,055 9.0% 34,719 15.7%
Investment 172,994 29.5% 148,179 27.5% 121,223 25.9% 24,815 16.7% 26,956 22.2%
Consumer (including Credit Card)
132,622 22.6% 131,671 24.5% 122,855 26.3% 951 0.7% 8,816 7.2%
Employee 2,946 0.5% 2,927 0.5% 2,827 0.6% 19 0.6% 100 3.5%
Total 586,940 100.0% 538,100 100.0% 467,509 100.0% 48,840 9.1% 70,591 15.1%
Loans Based on Industrial Sector
In managing concentration risk, BCA consistently diversifies its loans to various sectors, particularly those with strong growth prospects and performance.
In general, loan composition in 2019 was relatively stable compared with the previous year. The top 10 loans based on industrial sector accounted for 55.8% of total business loans, whereas each industry had a maximum exposure of less than 10% of total business loans.
Top 10 Industry Sectors in Corporate, Commercial and SME Segment (based on the Bank’s internal classification)*
2019 2018 2017
Financial Services 7.8% 8.0% 5.6%
Plantation and Agriculture 7.4% 7.5% 7.9%
Building Material and Other Construction Related 6.7% 6.7% 6.8%
Distributor, Wholesaler and Retailer 6.2% 6.6% 7.6%
Properties and Construction 5.4% 5.2% 5.0%
Automotive and Transportation 5.1% 5.0% 5.7%
Food and Beverages 4.4% 4.5% 4.9%
Textile and Garment 4.3% 4.5% 4.5%
Power Generation 4.3% 3.7% 4.0%
Chemicals and Plastics 4.2% 4.2% 4.4%
Total 55.8% 55.9% 56.4%
* Excluded consumer and employee loans
Note: The above loan categories are based on industry sectors used internally by BCA, different to the loan groupings in the Commercial Bank Report which is based on regulator’s criteria.
Loan Quality
BCA always prioritizes loan quality over growth by applying disciplined risk management measures, particularly in response to recent macroeconomic developments. The Bank’s loan quality remained intact and outperformed the industry average last year.
NPL loans were Rp7.9 trillion, or 1.3% of total loans. The NPL ratio declined by 10 bps compared with the previous year of 1.4%. This was the reward of prudent initiatives carried out in managing and anticipating asset quality decline. NPL ratios booked by each segment were still within the Bank’s risk appetite.
Special mention loans posted an increase of 19.9% from last year to Rp11.6 trillion. This particularly came from the consumer segment, mostly caused by the delay in payment for loans with day past due of less than 30 days.
Another loan quality indicator is Loan At Risk (LAR), which consists of NPL, special mention and restructured loans under the current category. Total LAR were Rp22.6 trillion or 3.9% of total loans, an increase by Rp2.4 trillion or 12.1% compared with a year before, coming mainly from the business segment. Despite the increase, BCA’s LAR was the lowest amongst its peers with coverage to total allowance for impairment losses of 65.9%.
Loan Collectability* (non consolidated, in billion Rupiah)
2019 2018 2017
Nominal (%) to
Total Loans Nominal (%) to
Total Loans Nominal (%) to Total Loans
Performing Loan 580,374 98.7% 530,320 98.6% 460,675 98.5%
Current 568,788 96.7% 520,654 96.8% 453,953 97.1%
Special Mention 11,586 2.0% 9,666 1.8% 6,722 1.4%
NPL 7,877 1.3% 7,594 1.4% 6,945 1.5%
Substandard 1,307 0.2% 1,678 0.3% 1,987 0.4%
Doubtful 687 0.1% 1,185 0.2% 686 0.2%
Loss 5,883 1.0% 4,731 0.9% 4,272 0.9%
Total Loans 588,251 100.0% 537,914 100.0% 467,620 100.0%
NPL Ratio – gross 1.3% na 1.4% na 1.5% na
NPL Ratio – net 0.5% na 0.4% na 0.4% na
Provision / NPL 189.2% na 178.7% na 190.7% na
* Although allowance for impairment losses is not calculated based on collectability, the calculation remains necessary to determine the Capital Adequacy Ratio (CAR) according to the regulator.
NPL Ratio of Consumer Loans (non consolidated)
2017 2018 2019
1.0% 1.1% 1.0%
Mortgages
3.0% 3.1%
3.6%
2 Wheeler
0.6% 0.9% 1.1%
4 Wheeler
1.9% 1.9%
1.5%
Credit Card
NPL Ratio by Segment (non consolidated)
2017 2018 2019
1.3%
Corporate
1.8% 1.6%
1.4%
Commercial &
SME
1.0% 1.2% 1.1%
Consumer
1.4% 1.4%
In 2019, BCA wrote off Rp2.9 trillion in loans, an increase of Rp0.4 trillion from a year before. Some 47.9% or Rp1.4 trillion of the total write-offs came from the consumer segment, particularly credit card and vehicle loans. Write-offs in the commercial segment were Rp0.7 trillion and contributed 25.4% to total written-off loans, particularly property and construction loans.
Loans Written Off (non consolidated, in billion Rupiah)
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Nominal % Nominal %
Corporate 524 788 - (264) -33.5% 788 na
Commercial 743 626 378 117 18.7% 248 65.6%
SME 255 44 72 211 479.6% (28) -38.9%
Consumer 1,400 1,040 884 360 34.6% 156 17.6%
Mortgage 305 170 21 135 79.4% 149 709.5%
4 Wheeler 420 214 157 206 96.3% 57 36.3%
2 Wheeler 157 187 255 (30) -15.9% (68) -26.7%
Credit Card 518 469 451 49 10.4% 18 4.0%
Total 2,922 2,498 1,334 424 17.0% 1,164 87.3%
BCA allocated an additional allowance for impairment losses on loans of Rp4.3 trillion, bringing total loans impairment allowance to Rp14.9 trillion. By year end, the allowance was 2.5% of total loans with an ample NPL coverage ratio at 189.2%.
Movement of Allowance for Impairment Losses on Loans Receivable (in billion Rupiah)
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Nominal % Nominal %
Beginning Balance 13,569 13,244 12,505 325 2.5% 739 5.9%
Beginning balance of new acquired Subsidiary 5 - - 5 na - na
Addition of allowance during the year 4,269 2,645 1,832 1,624 61.4% 813 44.4%
Loans written-off during the year (-/-) 2,952 2,498 1,334 454 18.2% 1,164 87.3%
Recoveries on loans previously written-off 31 147 235 (116) -78.9% (88) -37.4%
Exchange rate differences (16) 31 6 (47) -151.6% 25 416.7%
Ending Balance 14,906 13,569 13,244 1,337 9.9% 325 2.5%
BCA always adopts prudential banking principles to keep the loan quality and repayment capacity of customers amid challenges in business conditions. More than 70%
of restructured loans were categorized as current and special mention, particularly coming from the corporate and commercial segments engaged in basic metals and related industries and property & construction.
BCA proactively offers resolutions to customers with cash flow difficulties in meeting their due loans. Selective and customized restructuring plans are available for those with positive business prospects in the long run. As of 2019, restructured loans were Rp9.1 trillion, accounted for 1.6% of total loans, relatively stable compared with a year before.
Restructured Loan Outstanding (non consolidated, in billions Rupiah)
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Nominal % Nominal %
Performing Loan 6,506 5,650 4,371 856 15.2% 1,279 29.3%
Current 3,145 2,903 3,141 242 8.3% (238) -7.6%
Special Mention 3,361 2,747 1,230 614 22.4% 1,517 123.3%
NPL 2,642 2,336 2,197 306 13.1% 139 6.3%
Substandard 895 1,168 726 (273) -23.4% 442 60.9%
Doubtful 208 173 274 35 20.2% (101) -36.9%
Loss 1,539 995 1,197 544 54.7% (202) -16.9%
Total Restructured Loan 9,148 7,986 6,568 1,162 14.6% 1,418 21.6%
Total Loan Portfolio 588,251 537,914 467,620 50,337 9.4% 70,294 15.0%
% Restructured Loans to Total Loans Portfolio 1.6% 1.5% 1.4% na na na na
Fixed Assets
Fixed assets posted an increase of 7.8% compared with a year before to Rp20.9 trillion. The majority of the increase was contributed by land 70.2%. Fixed assets largely consisted of land and buildings, network investment including ATM, EDC and information technology investments and other supporting fixed assets booked under office supplies and equipment.
BCA constantly invests in network and information technology infrastructure to ensure the reliability of its transaction banking services. In 2019, realization of capital expenditure reached Rp3.0 trillion, with the highest expenditure allocated to IT infrastructure development and branch network, including ATM and EDC machines.