INDONESIA'S BANK CENTRAL ASIA 2008 NET PROFIT UP 28.7 PCT

JAKARTA-
PT Bank Central Asia Tbk (BCA) (JSX:BBCA) booked a net profit of Rp5.8 trillion (US$504.6 million) in 2008, which was an increase of 28.7 per cent from the previous year's Rp4.5 trillion.

Its president director, D.E Setijoso, said to reporters here on Monday the main factors behind the hike were net interest and fee-based incomes which had risen significantly.

The hike was also caused by five per cent reduction in income tax tariff in line with the implementation of Government Regulation Number 61 of 2007 for public corporations to meet qualifications.

The rise of the bank's net interest income by 29.0 per cent to Rp12.4 trillion was driven by significant credit growth, profitable composition of third party funds and balanced composition of productive assets.

The bank's fee-based income rose 36.5 per cent to Rp3.9 trillion on growth of income from transaction and account services, he said.

BCA by the end of 2008 also recorded 3.4 per cent return on assets and 30.2 per cent return on equity.

Setijoso said in the midst of current challenges BCA remained focussed on its efforts to maintain the position of its liquidity and strong capital structure.
"We continue to maintain and apply the BCA business model that has passed tests to optimize income what will strengthen the company's capital," he said.

BCA, he said, booked a significant credit growth in all segments of 36.9 per cent to Rp112.8 trillion compared with the same period last year which was recorded at only Rp82.4 trillion.

As a result its loan to deposit ratio rose to 53.8 per cent from the same period last year which was recorded at only 43.6 per cent. The bank's corporation credits grew 42.3 per cent to Rp46 trillion due to shortage of alternative funding sources for corporate clients.

The bank's portfolio of commercial credits and credits to small and medium businesses rose 27.3 per cent to Rp45.9 trillion, he said.

He said the bank's non-performing loans were relatively small recorded at only 0.6 per cent with an allocation of reserves for problematic credits increasing 408.4 per cent to Rp2.6 trillion.

He said in the midst of market uncertainty quality of credit portfolio had declined but it was still within a normal range.

Setijoso said the bank's third party funds grew 10.8 per cent to Rp209.5 trillion, supported by funds from savings and giro accounts.

Total savings rose 11.3 per cent to Rp105.4 trillion and total giro accounts rose 16.5 per cent to Rp51.2 trillion.

BCA has a strong foundation to continue its effort in developing a value franchise as a transactional bank by investing in network infrastructure and enriching variety of products and services to give comfort to customers when conducting transactions," he said.