Bank Central Asia (BCA), Indonesia's largest private lender, booked net profit of Rp 12.9 trillion (US$922.94 million) during the first half of the year, a year-on-year (yoy) increase of 12.6 percent from Rp 11.4 trillion last year, the bank’s top executive said in Jakarta on Thursday.
BCA president director Jahja Setiaatmadja said the bank's net profit grew on the back of a 13.1 percent yoy increase in interest earnings to Rp 24.6 trillion and a 24.5 percent yoy increase in other operating incomes to 9.6 trillion.
Meanwhile, lending increased 11.5 percent yoy to Rp 565.2 trillion in the first six month of the year. The corporate sector contributed 38.7 percent of total loans, with the sector growing 14.6 percent yoy to Rp 219.1 trillion.
Also in the first half of 2019, third-party funds (deposits) grew 8.6 percent to Rp 673.9 trillion, while bank non-performing loans to gross loans remained stable at 1.4 percent.
Despite overall growth, Jahja said he would manage the bank more prudently in the second half amid tight liquidity in the banking industry.
The industry's loan-to-deposit ratio (LDR) was 96.1 percent in May, which offers limited room for new loans.
Jahja explained that the bank's LDR fell last year from 81 percent to 79 percent as a result of adequate third-party funds.
"If [banks] want to be aggressive in loan growth, there will be no available funds, as the growth of third-party funds is relatively small. This gives us a picture of how liquidity can tighten if loans are pushed," he said. (hen)