Regulation of the Financial Services Authority ("POJK") no. 32/POJK.04/2014 on the planning and organization of the shareholders' meeting of joint stock companies and POJK no. 33/POJK.04/2014 on the board of directors and the board of commissioners of issuers or public companies, as stated in the decision on the declaration of the meeting no. Irawan Soerodjo, S.H., M.Si., Notary Public in Jakarta, notice of amendment of such statute has been received and recorded in the Administrative System of Legal Entities, Minister of Law and Human Rights of the Republic of Indonesia, as stated in letter no.
GENERAL (continued)
Extraordinary General Meeting of Shareholders ("EGMS") dated 12 April 2001 (deed of minutes of EGMS No. 25 dated 12 April 2001 made by Hendra Karyadi, S.H., Notary in Jakarta) approved the stock split of the Bank's shares from Rp 500 . (full amount) per share divided into 2 (two) shares with a nominal value of Rp 250 (full amount) per share, and agreed to the increase/addition of issued and paid-up capital of Rp through the Share-Based Management Compensation Program (" MSOP. PT Bank Digital BCA, a company domiciled in Indonesia and located at Jalan Suryopranoto No.52, Central Jakarta, Indonesia, is engaged in banking and has been operating since 1965.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared on the accrual basis, except for the consolidated statements of cash flows. Information about significant areas of estimation uncertainty and critical judgments in the application of accounting policies that have a significant effect on the amount recognized in the consolidated financial statements is described in Note 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) d. Changes in accounting policies
Press Release “Employee Benefits”
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) e. Basis of consolidation (continued)
Transactions denominated in foreign currencies are translated into Rupiah at the exchange rate prevailing on the date of the transaction. At the reporting date, year-end balances of monetary assets and liabilities denominated in foreign currencies are translated into Rupiah at the closing rates prevailing at the date of the consolidated statements of financial position.
The Group classifies its financial liabilities into the category of (a) financial liabilities at fair value through profit or loss and (b) financial liabilities measured at amortized cost. a) Financial liabilities measured at fair value through profit or loss. Financial assets at fair value through other comprehensive income are subsequently stated at fair value.
Refer to Note 2g for accounting policies for financial assets measured at amortized cost and measured at fair value through other comprehensive income. Refer to Note 2g for the accounting policy of financial assets and liabilities at fair value through profit or loss.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) m. Loan receivables
The increase is recognized in profit or loss up to the amount of impairment of the same asset from revaluation, which was previously recognized in the consolidated statements of profit or loss and other comprehensive income. Decreases that offset previous increases in the same asset are charged to "Revaluation surplus" in other comprehensive income, and all other decreases are charged to the consolidated income statements.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ae. Fees and commission income and expenses (continued)
These costs are included in employee benefit expense in the consolidated statements of profit or loss and other comprehensive income. Changes in the present value of the defined benefit obligation as a result of plan amendments or curtailment programs are recognized immediately in the consolidated statements of profit or loss and other comprehensive income as past service cost.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ag. Post-employment benefits obligation (continued)
The Group has the right to obtain substantially all of the economic benefit from the use of the identified asset; and. Otherwise, the Group values the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
USE OF ESTIMATES AND JUDGMENT
In the classification of financial assets as "measured at fair value through profit or loss", the Group has determined that the financial assets meet the description of assets measured at fair value through profit or loss, as defined in note 2g;. In the classification of financial assets as "measured at amortized cost", the Group has determined that the financial assets meet the description of assets measured at amortized cost as defined in note 2g;.
CASH
RR is a minimum reserve that must be maintained by the Bank in the form of checking accounts with Bank Indonesia. Information about the classification and fair value of current accounts with other banks can be found in Note 38.
PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS
Information on the classification and fair value of placements with Bank Indonesia and other banks is disclosed in Note 38. Information on the maturity of placements with Bank Indonesia and other banks is disclosed in Note 44.
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets and liabilities at fair value through profit or loss consist of
Information on the classification and fair value of financial assets and liabilities measured at fair value through profit or loss is disclosed in note 38. Information on the maturity of financial assets and liabilities measured at fair value through profit or loss is disclosed in note 44.
ACCEPTANCE RECEIVABLES AND PAYABLES (continued) b. The details of acceptance payables
BILLS RECEIVABLE
The management believes that the created value adjustment is sufficient to cover potential losses of uncollectible bills of exchange receivables. As of December 31, 2022 and 2021, the bank has no bills of exchange receivables from related parties.
SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL
Information on the classification and fair value of securities purchased under resale agreements is disclosed in Note 38. Information on the maturity of securities purchased under resale agreements is disclosed in Note 44.
LOANS RECEIVABLE
Deferred provisions and fee income represent all fees, commissions and other compensation received by the Bank under loan agreements and which are an integral part of the effective interest rate. Below is the movement of loans by phase during the years ended December 31, 2022 and 2021: (continued).
LOANS RECEIVABLE (continued)
Management believes that the provision for impairment losses was sufficient to cover potential losses on non-performing loans. As of December 31, 2022 and 2021, the Bank had no receivables on loans provided as collateral.
CONSUMER FINANCING RECEIVABLES
The subsidiaries provide consumer finance contracts for 4 (four) wheeled motor vehicles with terms ranging from 3 (three) months to 6 (six) years, while consumer finance contracts for 2 (two) wheeled motor vehicles range from 1 (one) year to 4 (four) years. The management assesses that the provision for impairment is sufficient to cover possible losses as a result of uncollectible receivables for consumer financing.
CONSUMER FINANCING RECEIVABLES (continued)
INVESTMENT SECURITIES
Rincian investasi saham yang dimiliki Grup pada tanggal 31 Desember 2022 dan 2021 adalah sebagai berikut: (lanjutan). PT Sarana Multi Infrastruktur (Persero) AAA Pefindo AAA Pefindo PT Sarana Multigriya Finansial (Persero) AAA Pefindo AAA Pefindo.
FIXED ASSETS
Gains from the sale of fixed assets recognized as part of other operating income for the years ended December 31, 2022 and 2021 amounting to Rp 2,642 and Rp 8,089 respectively. Loss on sale of fixed assets recognized as part of other operating expenses for the years ended December 31, 2022 and 2021 amounting to Rp 6,936 and Rp 5,320 respectively.
INTANGIBLE ASSETS
OTHER ASSETS
Information on the classification and fair value of deposits from customers and other banks is disclosed in Note 38. Information about the maturity date of deposits from customers and other banks is disclosed in Note 44.
INCOME TAX a. Prepaid tax
Annual tax return (“SPT”) of corporate income tax for fiscal year 2022 has not yet been filed. The calculations of income tax for the year ending 31 December 2021 are consistent with the Bank's Annual Tax Returns ("SPT").
INCOME TAX (continued)
The Bank has filed an appeal against the tax objections that the Directorate General of Taxes did not approve on December 7, 2020, amounting to Rp 735,407. The Bank has filed an appeal against the tax appeals that the Directorate General of Taxes did not approve on February 25, 2022, for an amount of Rp 709,060.
DEBT SECURITIES ISSUED
Until the date of these consolidated financial statements, the outcome of the appeal is not yet known. All of the Subsidiary's current bonds III - Phase I year 2019 are not guaranteed with specific collateral, but rather with all of the Subsidiary's assets.
BORROWINGS (continued)
All of the above loan agreements contain certain covenants normally required for such credit facilities, such as restrictions on initiating mergers or consolidations with other parties, obtaining loans from other parties, other than loans obtained in the ordinary course of business, or altering the capital structure and/or articles of association without notice to/prior written approval of creditors and maintenance of certain agreed financial ratios.
ESTIMATED LOSSES FROM COMMITMENTS AND CONTINGENCIES Estimated losses from commitments and contingencies consist of
Information regarding the classification and estimated losses from obligations and contingency value is disclosed in Note 38. Information regarding the maturity date of estimated losses from obligations and contingencies is disclosed in Note 44.
ACCRUALS AND OTHER LIABILITIES
Liabilities to policyholders represent liabilities of Subsidiary for long-term insurance contract, liability for future policy benefits, unearned premium reserves and estimated claim. Liabilities from insurance transactions were liabilities of Subsidiary for reinsurance payable, coinsurance payable and claim in process.
SUBORDINATED BONDS
The proceeds from the issuance of Bank Central Asia Continuous Subordinated Bonds I Phase I Year 2018 - Series A and B will be used to grow the Bank's business, especially for credit expansion. The trustee of the above subordinated bonds is PT Bank Rakyat Indonesia (Persero) Tbk which is not a related party to the Bank.
SHARE CAPITAL
Per On 31 December 2022 and 2021, the bank was in compliance with all material covenants in relation to the issued subordinated debt agreements. At the bank's extraordinary general meeting on 23 September 2021, the bank's share split was approved, which was later approved by the Indonesian stock exchange through its letter no.
ADDITIONAL PAID-IN CAPITAL
The Bank is a party to various pending legal actions, administrative proceedings and claims in the ordinary course of its business. It is not possible to predict with certainty whether or not the Bank will be successful in any of these legal matters or, if not, what the impact may be.
INTEREST AND SHARIA INCOME Interest and sharia income consist of
The bank's management does not expect the results of any of these procedures to have a significant negative impact on the bank's operating results, financial position or liquidity. Total interest expenses Interest and expenses for customer deposits with related parties are disclosed in Note 48.
FEE AND COMMISSION INCOME - NET
ADDITION (REVERSAL) OF IMPAIRMENT LOSSES ON ASSETS
PERSONNEL EXPENSES
BASIC AND DILUTED EARNINGS PER SHARE
APPROPRIATION OF NET INCOME
Determine royalties for the members of the board of directors and the board on duty in 2020 with a maximum amount of Rp 445,000. The bank's ordinary general meeting on 29 March 2021 also decided to give the bank's board of directors the power and authority (with approval from the board) to pay out a temporary dividend for the financial year 2021, where possible, taking into account the bank's financial situation.
FINANCIAL INSTRUMENTS
The bank's obligation for pension benefits for the years ended 31 December 2022 and 2021 was in accordance with the independent actuarial reports dated 6 January 2023 and 7 January 2022 respectively. The subsidiaries' expenses for pension benefits for the years ended 31 December 2022 and 2021 are listed in the result on Rp 3,260 and Rp 15,354 respectively.
MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
The services offered by the Bank's Custodial Services Bureau include custody, settlement and transaction management, income collection, power of attorney, corporate action, cash management, investment registration/reporting and tax recovery. Per On 31 December 2022 and 2021, assets managed by the bank's custodian office consist of shares, bonds, time deposits, certificates of deposit, commercial papers and other money market instruments.
OPERATING SEGMENTS
FINANCIAL RISK MANAGEMENT
The internal credit risk assessment/scoring system consists of 11 (eleven) risk assessment categories from RR1 to RR10 and the worst (loss). The following table shows the Group's maximum exposure to the credit risk of financial instruments in the consolidated statements of financial position (balance sheet) and consolidated administrative financial statements (off-balance sheet).
FINANCIAL RISK MANAGEMENT c. Credit risk management (continued)
Financial assets that are not individually significant consist of loans and receivables from the Group to retail debtors, i.e. the Group determines that impairment losses of financial assets that are not individually significant are assessed collectively by grouping those financial assets on based on similar risk characteristics.
FINANCIAL RISK MANAGEMENT (continued) c. Credit risk management (continued)
The bank's policy is to cash in collateral that is withdrawn as part of the credit settlement. As of December 31, 2022 and 2021, the Group had financial assets measured at fair value through profit or loss in the amount of Rp 2,233,129 and Rp 2,233,129 respectively (note 8). Information on the credit quality of the maximum exposure to credit risk of financial assets at fair value through profit or loss) was as follows:.
FINANCIAL RISK MANAGEMENT c. Credit risk management (continued)
FINANCIAL RISK MANAGEMENT (continued)
The calculation of interest rate risk in the banking book ("IRRBB") uses 2 (two) perspectives, which are the economic value perspective and the earnings perspective. Fair value interest rate risk is the risk that the fair value of financial instruments fluctuates as a result of movements in market interest rates.
FINANCIAL RISK MANAGEMENT (continued) e. Market risk management (continued)
In addition, the Bank has qualified infrastructure to support the implementation of operational risk management, called the Operational Risk Management Information System (“ORMIS”), which consists of three modules. To make the implementation of operational risk management more effective and efficient, the bank continuously improves ORMIS in line with the latest operational activities of the bank.
NET OPEN POSITION
CAPITAL MANAGEMENT
The bank is required to provide the minimum capital according to the risk profile on December 31, 2022 in accordance with the Regulation of the Financial Services Authority No.
NON-CONTROLLING INTEREST
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Related Parties Nature of Relationship Nature of Transaction PT Lunar Inovasi Teknologi Owned by the same ultimate. Related Parties Nature of Relationship Nature of Transaction PT Sarana Kencana Mulya Owned by the same ultimate.
NET PAYABLE RECONCILIATION
GUARANTEES ON THE OBLIGATIONS OF DOMESTIC BANKS
At the approval date of these consolidated financial statements, the Group is still assessing the potential impact of the implementation of these new standards and the impact on the Group's consolidated financial statements.
NEW REGULATIONS ISSUED BY REGULATORS RELATED TO CORONAVIRUS DISEASE 2019 (COVID-19)
ADDITIONAL INFORMATION
Current accounts with other banks - after deducting impairment losses of Rp 595 as of December 31, 2022. Placements with Bank Indonesia and other banks - after deducting impairment losses of Rp 5,463.
