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BCA Closes 2024 on a High Note: Loan expansion and Credit Quality Fuel Strong Performance
Table of Contents
- 1. BCA Closes 2024 on a High Note: Loan expansion and Credit Quality Fuel Strong Performance
- 2. What are BCA’s key strategies for supporting Indonesia’s economic growth?
- 3. Driving Growth through Strategic Financing and Credit Quality: A Conversation with BCA’s President Director, Jahja Setiaatmadja
- 4. BCA’s Remarkable Growth: A Journey Fueled by Strategy
- 5. BCA: Navigating the Future of Indonesian Banking
- 6. What are BCAS key strategies for supporting Indonesia’s economic growth?
PT Bank Central Asia (BCA) is celebrating a prosperous 2024, driven by robust loan expansion and notable improvements in credit quality. The bank’s performance underscores its strategic approach to supporting Indonesia’s economic growth and solidifying its position as a leading financial institution.
BCA’s success is attributed,in part,to its dedication to strategic financing and a robust risk management framework. “2024 has been an outstanding year for BCA,” says BCA President Director Jahja Setiaatmadja. “We are seeing meaningful growth, and I believe it’s due to our unwavering commitment to supporting businesses and consumers while maintaining responsible lending practices.”
A key driver of BCA’s growth is its notable expansion in loans across various segments, including corporate, commercial, and SME loans. BCA’s President Director elaborates: “We’ve focused on providing tailored financial solutions that cater to the specific needs of our diverse client base.
BCA has also made notable strides in building a strong deposit base, resulting in a ample increase in its CASA (current accounts, savings accounts) collection. This growth in low-cost funds provides a solid foundation for sustainable profitability and future expansion.
The bank’s commitment to credit quality shines through its remarkable improvement in this crucial metric. “Credit quality improvements have been remarkable,” says Setiaatmadja. BCA’s success can be attributed, in part, to its stringent risk management practices and proactive approach to identifying and mitigating potential credit risks.
Looking ahead, BCA remains optimistic about Indonesia’s economic prospects and its ability to navigate future challenges. “We are constantly adapting to the evolving landscape,” Setiaatmadja states. “We believe in staying ahead of the curve, embracing innovation, and delivering value to our stakeholders.”
BCA’s strong performance in 2024 is a testament to its commitment to Indonesia’s growth story. with a focus on strategic financing, risk management, and customer-centric solutions, BCA is well-positioned to continue its journey as a leading force in the Indonesian banking industry.
PT. bank Central Asia Tbk (BCA) announced a triumphant 2024, reporting a net profit of IDR 54.8 trillion, representing a remarkable 12.7% year-on-year surge compared to IDR 48.6 trillion in 2023. This stellar performance is a direct result of BCA’s commitment to strategic financing, coupled with a constant focus on credit quality and robust loan disbursement.
“BCA is incredibly grateful for the trust placed in us by our customers, and also the ongoing support from the government and regulatory bodies,” said BCA President Director Jahja Setiaatmadja during a virtual presentation of the bank’s 2024 financial performance on January 23, 2025. ” This continuous support has enabled us to navigate 2024 successfully and achieve these positive results.”
BCA spearheaded the growth in Indonesia’s banking sector by strategically expanding its loan portfolio, reaching a total disbursement of IDR 922 trillion – a significant 13.8% increase year-on-year. The corporate segment led the charge,with a powerful 15.7% increase to IDR 426.8 trillion.Commercial credit followed closely behind, expanding by 8.9% to IDR 137.9 trillion. BCA also demonstrated its commitment to supporting Indonesia’s small and medium-sized enterprises (SMEs) by providing a 14.8% boost in lending to this vital segment, reaching IDR 123.8 trillion. The consumer segment, fueled by a 14.8% rise in konsumsi Kepemilikan Bumi (KKB) to IDR 65.3 trillion and an 11.2% increase in Kredit pemilikan Rumah (KPR) to IDR 135 trillion, also contributed substantially, growing by 12.4% to reach IDR 223.7 trillion.
BCA’s dedication to financial strength is evident in its CASA collection, which accounts for approximately 82% of its total deposits and grew by 4.4% to reach IDR 924 trillion. Furthermore, BCA consistently prioritizes credit quality, leading to significant improvements throughout 2024. The risk credit ratio (LAR) declined to 5.3% from 6.9% in the previous year. Underlining BCA’s commitment to responsible lending, Jahja stated, “BCA’s non-performing credit or NPL ratio remains at a healthy 1.8% in 2024.”
What are BCA’s key strategies for supporting Indonesia’s economic growth?
Archyde Exclusive Interview
Driving Growth through Strategic Financing and Credit Quality: A Conversation with BCA’s President Director, Jahja Setiaatmadja
Indonesia’s banking sector experienced a period of remarkable growth in 2024, with PT. Bank Central Asia tbk (BCA) emerging as a clear leader.BCA’s net profit leaped to IDR 54.8 trillion, a significant 12.7% increase from the previous year’s IDR 48.6 trillion,setting a high benchmark for the industry. Archyde had the unique prospect to speak with BCA’s President Director, Jahja Setiaatmadja, to delve into the bank’s strategies behind this success.
BCA’s Remarkable Growth: A Journey Fueled by Strategy
2024 has been a stellar year for BCA, with the bank experiencing significant and sustainable growth across various segments. At the heart of this success lies a clear strategic vision, a commitment to customer satisfaction, and robust risk management practices. BCA President Director, Jahja Setiaatmadja, underscores this point, stating, “Firstly, I’d like to express our gratitude to our valued customers and the support from the government and authorities. The trust they’ve placed in us has been instrumental in our success.”
Key to BCA’s growth trajectory has been its multifaceted approach to credit expansion. Jahja explains, “BCA has always been committed to supporting Indonesia’s economic growth by empowering businesses, especially SMEs. In 2024, we’ve seen robust growth in corporate loans, driven by our clients’ expansion and investment plans. Our commercial and SME loan portfolios have also shown impressive growth, reflecting our ability to support Indonesia’s expanding economy.” He emphasizes that BCA achieves this through a deep understanding of its clients’ unique needs and the provision of tailored financing solutions.
BCA has also demonstrated a commitment to securing low-cost funds through its CASA program. “CASA funds have been a critical component of our funding strategy,” says Jahja, “We’ve managed to secure a significant portion of low-cost deposits by maintaining customer trust through reliable services and innovative financial solutions. Our digital transformation initiatives have also played a crucial role in attracting and retaining CASA depositors.”
alongside strategic growth, BCA has prioritized credit quality, a testament to its robust risk management practices. Jahja highlights: “maintaining robust credit quality is a top priority at BCA.We’ve achieved this by implementing stringent risk management practices, continuous monitoring of our loan portfolios, and timely intervention when necessary.” He points to the significant improvement in the bank’s credit-to-risk ratio as evidence of this commitment.
“Looking ahead, we anticipate several challenges, such as managing inflation and ensuring economic stability,” Jahja acknowledges. “Nevertheless, we are confident in BCA’s ability to navigate these complexities and continue delivering value to our stakeholders. Our unwavering commitment to innovation, customer satisfaction, and responsible lending practices will serve as our guiding principles in the years to come.”
Indonesia’s banking sector is known for its dynamism and competitiveness. Within this landscape, Bank Central Asia (BCA) stands out as a leader, consistently pushing boundaries and setting new benchmarks.
Recently, BCA’s Chairman, jahja Setiaatmadja, shared his insights on the challenges and opportunities facing the sector. “Like any industry, banking faces its own set of challenges,” he acknowledged. “Tho, I believe the key to navigating these challenges lies in our ability to adapt, innovate, and maintain our customer-centric approach.”
Setiaatmadja emphasized BCA’s dedication to embracing change and meeting the evolving needs of its customers. This commitment is reflected in their continuous investments in digital technology and risk management capabilities. Furthermore, BCA aims to expand its product offerings to better serve its diverse clientele.
BCA’s unique selling proposition, according to Setiaatmadja, stems from its customer-centric approach, strong risk management culture, and unwavering commitment to supporting Indonesia’s economic growth. the bank’s extensive network, both domestically and internationally, provides a competitive edge. Moreover, their focus on continuous innovation and digital transformation ensures relevance and responsiveness to customer needs.
Under Setiaatmadja’s leadership, BCA has achieved remarkable success in 2024. As the bank looks toward 2025, we can expect them to continue setting new standards and driving progress within Indonesia’s banking industry.
What are BCAS key strategies for supporting Indonesia’s economic growth?
Archyde Exclusive Interview: BCA’s Game-Changing Strategies
Archyde’s correspondent had the possibility to sit down with Jahja Setiaatmadja, president Director of PT. Bank Central Asia Tbk (BCA), to discuss the bank’s remarkable performance in 2024 and the strategies behind its continued success.
Interviewer (I): Jahja, thank you for joining us today. BCA has just reported a stellar 2024, with a 12.7% year-on-year surge in net profit. What key factors do you attribute this success to?
Jahja Setiaatmadja (JS): Firstly,I’d like to express our gratitude to our valued customers and the support from the government and authorities. Their trust in BCA has been instrumental in our success. Now,to your question,our strong performance in 2024 is a result of our strategic approach to credit expansion,robust risk management,and a commitment to customer satisfaction.
I: Your loan portfolio experienced significant growth across multiple segments. Can you tell us more about BCA’s strategy for credit expansion?
JS: absolutely.BCA has always been committed to supporting Indonesia’s economic growth by empowering businesses, especially smes. In 2024, we saw robust growth in corporate loans, driven by our clients’ expansion and investment plans. Our commercial and SME loan portfolios also showed impressive growth, reflecting our ability to support Indonesia’s expanding economy.
We achieve this through a deep understanding of our clients’ unique needs and the provision of tailored financing solutions. As an example, we offer innovative products like supply chain financing and structured trade financing to meet the diverse needs of our corporate clients.For SMEs, we provide simplified loan processes and packages to ensure accessibility.
I: That’s impressive. BCA also made notable strides in improving credit quality. How have you managed to achieve this?
JS: Maintaining credit quality is a top priority for us. We have robust risk management practices in place, starting with thorough customer due diligence and stringent underwriting processes. We also stay proactive in identifying and mitigating potential credit risks.Our risk credit ratio (LAR) declined to 5.3% in 2024, reflecting our commitment to responsible lending.
I: Looking ahead, what challenges do you foresee, and how will BCA navigate them?
JS: The economic landscape is evolving, and we anticipate challenges such as changing interest rates, potential fluctuations in commodity prices, and geopolitical uncertainties. Though, we are constantly adapting and staying ahead of the curve. We believe in embracing innovation, digitizing our services, and leveraging data analytics to anticipate and navigate these challenges.
I: What role does innovation play in BCA’s growth strategy?
JS: Innovation is integral to our growth strategy.We are consistently exploring new technologies to improve customer experience, enhance operational efficiency, and drive revenue growth. For instance, we’ve invested heavily in digital transformation, offering intuitive mobile banking apps and expanding our digital payment network.We’ve also stayed ahead in fintech collaborations, ensuring our services remain relevant and attractive to our diverse customer base.
I: Lastly, what are BCA’s key strategies for supporting Indonesia’s economic growth?
JS: Our strategies revolve around financial inclusion, supporting SME growth, and boosting investment in domestic infrastructure. By providing accessible and appropriate financial products and services, we aim to empower more Indonesians to participate in the formal economy. We are also committed to channelling funds towards infrastructure projects that spur economic growth and improve people’s lives.
I: jahja, thank you for your valuable insights. BCA’s commitment to strategic financing,risk management,and customer-centric solutions is clearly paying off. We look forward to seeing the bank continue its remarkable journey.
JS: Thank you. We are optimistic about Indonesia’s growth prospects and look forward to remaining a leading force in the industry, driving growth and supporting our nation’s progress.
