BBCA recorded a decrease in net income to IDR12.2 trillion in 1H20 from the previous IDR12.8 trillion in 1H19. As an effort to maintain credit quality, BBCA booked bad debt provision significantly higher to 167.3% YoY, valued at IDR6.5 trillion, which then pressed the net income down 4.8% YoY. Without the significant increase of provision, BBCA would book almost 16% increase in net income supported by net interest income and other operational income which each grew 10.6% YoY and 9.6% YoY. This growth is in line with the decrease in the cost of funds and the slowing increase in operating expenses. In addition, restrictions on economic activities also reduce the demand for corporate credit, which is the largest segment of BBCA. During the 1H20 period, BBCA was still able to record corporate credit growth of 17.7% YoY, surpassing the commercial & SME and consumer segments which fell by 0.9% YoY and 5.1% YoY respectively.
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