Hello, loyal readers! This time we will discuss the brilliant achievements of one of the largest banks in Indonesia, Bank Central Asia ($BBCA). In April 2025, the bank recorded an astonishing net profit of 4.5 trillion rupiah, despite a decline of -8.2% YoY and -33% MoM. However, make no mistake! Bank-only net profit during 4M25 actually grew 17% YoY to 20.2 trillion rupiah. How come? Let’s peel it off!

Dividend Subsidiaries Become Key Supporters

If we look deeper, this increase in net profit is largely thanks to dividend contributions from subsidiaries. It is recorded that there is a considerable dividend receipt, reaching 2.2 trillion rupiah in March 2025. This means that Non-Interest Income (Non-II) increased by 26% YoY during 4M25! Although the dividend from the subsidiary looks profitable, it should be noted that this figure does not appear in BBCA’s consolidated financial statements.

Tempting CASA Ratio

Another thing that makes BBCA shine is the high CASA Ratio which reaches 82.9%. This is inversely proportional to the growth of Time Deposits which showed a decrease of -2.7% YoY. The Net Interest Margin (NIM) level also showed an increase to 5.7%, in line with the management’s target for 2025 in the range of 5.7%-5.8%.

News Behind the Positive Trend

According to BBCA management in its 1Q25 earnings call, there is the potential for loan repricing due to the slowdown in credit growth. Total loan growth was recorded at moderate 12.8% YoY, towards management’s target for 2025. One thing to note, the Loan-to-Deposit Ratio (LDR) also showed an increase to the level of 80%, so it is still in the safe category compared to other major banks.

Load of Provisions Falls

Another good news is that BBCA’s provision expense is decreasing, and the Cost of Credit (CoC) remains higher than the set target. This shows that BBCA is trying hard to maintain the health of its financing, despite the liquidity situation in the financial markets becoming tighter.

Conclusion: Mixed Performance and Expectations Ahead

We assess BBCA’s performance during 4M25 as a mixed performance. Although there is a decline in profit compared to last year, there are many positives to be taken away, such as a maintained NIM and an impressive CASA Ratio. This shows that BBCA still has the power to adapt in a challenging market situation. What do you think about BBCA? Have you considered investing in this stock? Let’s discuss it in the comment section!