DEPOK (eNBe Indonesia) - PT Bank Central Asia (BCA) Tbk (BBCA), the largest company listed on the Indonesia Stock Exchange (IDX) by market capitalization, booked net profit of Rp40.75 trillion in 2022, grew 29.6% year on year (y/y), as provision fell 51.5% y/y to Rp4.53 trillion.
Investors responded positively with 3.35% gain to Rp8,475 on Thursday (Jan 26) to make a market capitalization of Rp1,034 trillion.
BBCA, accordingly, is now valued 4.7 x equity (Rp221.18 trillion by Dec 31, 2022), and traded with PE multiple 25.7, substantially higher than other major banks like Bank Rakyat Indonesia (BBRI) and Bank Mandiri (BMRI).
BCA, majority owned by Hartono Brothers (Djarum Group), paid out cash dividends of Rp19.1 trillion last year, jumped from Rp13.73 trillion in 2021.
That means the Hartono brothers got around Rp10 trillion of cash dividends from the bank. We can safely say that BCA is the main cash cow for the brothers, probably followed by telco tower company Sarana Menara (TOWR) and cigarette company Djarum.
Compared to other tobacco families (Sampoerna and Wonowidjojo), the Hartonos are considered the most successful in diversification program away from cigarette.
TOWR currently has market capitalization of Rp57 trillion, while e-commerce giant Global Digital Niaga (BELI/BliBli) has around Rp55 trillion.
The Wonowidjojos have only recently developed non-cigarette business through Gudang Garam even though one member, Susilo Wonowidjojo, has long grown plantation business through MAKIN Group.
Putera Sampoerna, used to control HM Sampoerna, has rarely been seen in recent years other than his family’s direct investment in property, plantation, and technology businesses.
In recent years, the Hartonos have invested more in technology and agriculture, particularly sugar plantation. We haven’t seen the family entering infrastructure other than in the telco and technology.
Most recently, Djarum joined the development of electric vehicle (EV), mainly motorcycle, and became partner shareholder of Harita Group and Lygend Resources in nickel pig iron (NPI) project in Obi Island, Halmahera, North Maluku province.
We have also seen Djarum Group’s inorganic expansion through acquisitions in the telco tower (Solusi Tunas Pratama) and retail (Ranch Market).
With strong cash in hands, it is clearly interesting to see more acquisitions from the family going forward.
BBCA reported a strong year with operating income rose 11.5% y/y to Rp86.82 trillion, while operating expenses increased 8.2% y/y to Rp31.85 trillion.
Net interest income rose 13.6% y/y to Rp64.1 trillion, and non interest income grew 5.8% y/y to Rp22.67 trillion. Fees and commissions rose 13% y/y to Rp16.58 trillion.
BBCA reported net interest margin (NIM) of 5.3% in 2022, higher than 5.1% in 2021. Its capital adequacy ratio (CAR) reached 25.8%, higher than 25.7% in 2021.
Gross non performing loan (NPL) was 1.7%, lower than 2.2% in the previous year, supported by relaxation on restructuring policy.
Credit grew 11.7% y/y to Rp711.26 trillion, higher than the target of 8%-10% growth, and its assets rose 7% y/y to Rp1,314.73 trillion.
Corporate loan grew 12.5% y/y to Rp322.17 trillion, commercial & SME loan rose 10.1% y/y to Rp210.16 trillion, and consumer loan increased 11.7% y/y to Rp171.34 trillion.
BCA’s loan quality has been improving along with credit growth. Loan at Risk (LAR) ratio improved to 10.0% in 2022, from 14.6% in 2021.
On the funding side, BCA’s CASA increased 10.6% y/y to Rp847.9 trillion in 2022, contributing 82% to total third-party funds. Third-party funds grew by 6.5% y/y to Rp1,040 trillion, supporting total asset growth of 7.0% YoY to Rp1,315 trillion.
BBCA also increased capital of its digital bank (Bank Digital BCA) to Rp4 trillion from previous Rp2.7 trillion.
Bank Digital BCA has managed public funds of Rp800 billion with 100,000 transactions per day. This Bank is prepared to launch the initial public offering (IPO) within next 1-2 years.
For banking industry, banking sector loans increased 11.0% y/y in 2022 driven by sustained business momentum across segments and economic sectors.
Deposit growth rate was 6.8% y/y, a normalized level owing to economic rebounds. LDR rose year to date (ytd), standing at 82.4% as loans outgrew deposits.
Margin improved amidst rising interest rate environment. Banking sector delivers sound profitability growth in 2022. Asset quality continued to improve.
OJK extends the credit restructuring relaxation policy period until March 2024. CAR ratio to increase from the implementation of Standardized Approach for credit risk and operational risk effective January 2023.***
