Macro
2014 was a year of major change in Indonesia. Joko Widodo (Jokowi) was elected President, the first from outside the political elite and his government cut fuel subsidies, reallocating budget toward infrastructure. GDP growth fell to ~5.0% from 5.6% the year before and the lowest since the global financial crisis. In addition, commodity prices dropped (coal, palm oil), China’s demand slowed, and investments weakened. Lastly, Bank Indonesia hiked the BI rate to 7.75% in Nov 2014, as part of preemptive monetary tightening.
BCA Financial Highlights (2014)
BCA had a good year overall
- Net income grew by 15.8% to 16.51 trillion IDR
- Loans receivables grew by 10.9%
- Deposits grew by 9.3%
- Total equity grew by 21.8%
- ROA was stable at 3.9%
- ROE reduced slightly to 25.5%
Key financial results are below:
| Metric | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|
| Net Interest Income | Rp 32.03T | Rp 26.43T | Rp 21.24T | Rp 18.05T |
| Other Income (Fees) | Rp 9.02T | Rp 7.95T | Rp 6.38T | Rp 5.99T |
| Net Income | Rp 16.51T | Rp 14.26T | Rp 11.72T | Rp 10.82T |
| Earnings per Share | Rp 669 | Rp 579 | Rp 480 | Rp 444 |
| Total Assets | Rp 552.4T | Rp 496.3T | Rp 443.0T | Rp 381.9T |
| Loans Receivable (Gross) | Rp 346.6T | Rp 312.3T | Rp 256.8T | Rp 202.3T |
| Total Liabilities | Rp 474.5T | Rp 432.3T | Rp 391.1T | Rp 339.9T |
| – CASA | Rp 336.4T | Rp 322.9T | Rp 297.3T | Rp 249.0T |
| – Term Deposits | Rp 111.5T | Rp 86.6T | Rp 73.0T | Rp 74.4T |
| Total Equity | Rp 77.92T | Rp 63.97T | Rp 51.90T | Rp 42.03T |
Key metrics were as follows:
| Metric | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|
| NPL (Gross) | 0.60% | 0.40% | 0.40% | 0.50% |
| ROA | 3.90% | 3.80% | 3.60% | 3.80% |
| ROE | 25.5% | 28.2% | 30.4% | 33.5% |
| NIM | 6.50% | 6.20% | 5.60% | 5.70% |
| Cost Efficiency Ratio | 44.20% | 42.90% | 46.40% | 47.20% |
| Accounts (m) | 13.37 | 12.49 | 11.45 | 10.23 |
| ATMs | 16,694 | 14,048 | 12,026 | 8,578 |
| P/E Ratio | 19.6x | 16.6x | 19.0x | 18.0x |
| P/B Ratio | 4.20x | 3.70x | 4.30x | 4.60x |
| CASA Ratio | 75.11% | 78.85% | 80.28% | 76.99% |
Transaction banking
Consumer accounts grew 7.1% to 13.37 million users. The numbers of customers using KlikBCA increased from 4.1 million to 4.5 million. The website isn't the best in the world, but it works.
In terms of transaction channels:
| Channel | Transactions (billion) | Value (Rp trillion) | AOV |
|---|---|---|---|
| Branch Banking | 0.187 → 0.179 | 15,200 → 15,110 | 84m/trx |
| ATM | 1.462 → 1.678 | 1,541 → 1,732 | 1.03m/trx |
| Internet Banking | 0.895 → 1.165 | 4,731 → 5,350 | 4.5m/trx |
| Mobile Banking | 0.408 → 0.499 | 390 → 486 | 0.98m/trx |
Branch banking is seeing a slow decline, and Internet banking is seeing the fastest increase.
BCA is now processing over 15 trillion IDR per day.
BCA also increased their ATMs by 18.8% to 16,694 ATM, one ATM for every 800 users.
Deposits
Due to the shaky macro, BCA drove proactive rate management for time deposits.
- Overall third party funds grew 9.4% on the back of higher term deposits. This was the slowest year for deposit growth, with the previous years being 10.6%, 14.5%, 16.5%
- CASA grew from 322,895 billion IDR to 336,412 billion IDR (+4.2% YoY). The yearly growth for the last few years was 8.6%, 19.4%, 18.8%, so it was quite a bad year for CASA
- Time deposits grew from 86,591 billion IDR to 111,494 billion IDR (+28.76% YoY). This was the highest yearly growth that we have seen for a while.
- 84.8% of time deposits were short-tenure (1-month), which was slightly higher than the previous years
BCA was smart in understanding that the liquidity will be volatile and too proactive steps to increase term deposits before the market responded, and successfully managed to close higher term deposits before interest rates for customers increased.
Lending
In terms of lending, BCA focused on existing high-quality borrowers, emphasizing stability over aggressive growth.
- Overall loans receivable grew from 312,290 billion IDR to 346,563 billion IDR (+11%)
- Corporate loans grew from 103,082 billion IDR to 120,485 billion IDR (+16.9%)
- Commercial & SME loans grew from 120,717 billion IDR to 132,306 billion IDR (+9.6%)
- Consumer loans grew from 86,984 billion IDR to 92,277 billion IDR (+6.1%), which can be further broken down into the following
- Mortgages reached 54,700 billion IDR (+3.4% YoY, 32% CAGR since 2007)
- Vehicle loans reached 28,900 billion IDR (+8.6% YoY)
- Credit cards: 8.77 trillion IDR (2.6M cards, 16.1% market share)
Most of the growth was driven by corporate loans, and consumer loans took a major backseat.
Though, the overall market wasn't doing too well.
- New car sales in Indonesia went down from 1.23 million in 2013 to 1.21 million in 2014.
- Motorcycle sales grew 2% to 7.9 million units in 2014.
New Businesses and Subsidiaries
BCA expanded its financial services footprint and launched BCA Life. The major subsidaries now include
- BCA Finance – 4-wheeler loans (Rp 35.6T AUM, Rp 1T net income)
- Central Santosa Finance – 2-wheeler financing
- BCA Insurance – General insurance
- BCA Life – Launched in Q4 2014
- BCA Sekuritas – Capital markets arm
- BCA Syariah – Islamic banking
Final Thoughts
Despite fuel subsidy shocks, BI tightening, and political transition, BCA delivered exceptional results with strong digital adoption, a deepening financial ecosystem, and rock-solid fundamentals. It remains Indonesia’s gold standard in transaction banking and prudent growth.