Bank BCA Outperformed Bank Mandiri and Bank BRI in Profit Growth
Bank Central Asia, Tbk (BBCA IJ), the largest private bank, saw its loan growing by 5.8% yoy to IDR386.1trn in 9M16). Its bad loan as reflected by its non-performing loan (NPL) ratio which doubled to 1.5% from 0.7% a year earlier, therefore its loan-loss provision rose was up 47.8% yoy to IDR11.3trn. The management saw credit demand are softening due to weaker consumer purchasing power. Despite such thin loan growth, Bank BCA still reported decent bottom line growth with its net profit growing by 13.2% to IDR15.1trn, the largest among other big banks like Bank Mandiri, Tbk (BMRI IJ) and Bank Rakyat Indonesia, Tbk (BBRI IJ). Bank BRI reported its net profit growing only 3% to IDR18.9trn while Bank Mandiri slumped 17.6% to IDR12trn. Both banks net profit were suppressed by higher loan loss provision. Bank Mandiri even nearly doubled its loan-loss provisions to IDR15.9trn rupiah while Bank BRI expanded its cushion 62% to IDR11.5trn. Bank Mandiri also saw rises in nonperforming loans in with its NPL surged to 3.8% from 2.8% a year earlier. Unlike Bank Mandiri and Bank BCA, Bank BRI saw its NPL improve slightly to 2.22% from 2.24% last year.
