Bank Central Asia (BCA) $BBCA just reported a very surprising result! In the fourth quarter of 2024 (4Q24), BCA recorded a net profit of 13.8 trillion rupiah, despite a decline of 3% QoQ, but still showed impressive growth of 13% YoY. Thus, total net profit during FY24 reached 54.8 trillion rupiah, grew 12.7% YoY and in line with market expectations, reflecting a result equivalent to 100% of the FY24F consensus estimate.

Factors Supporting BCA’s Positive Performance

BCA was able to achieve positive performance thanks to several key factors, including:

1. Stable Net Interest Margin (NIM): BCA’s NIM in this quarter increased to 6%, bringing the average NIM during FY24 to around 5.8%. Management targets FY25 NIM between 5.7% to 5.8%, which indicates consistency in performance.
2. Maintained Asset Quality: The bank’s credit cost (CoC) was only -0.1% in 4Q24, with the FY25 CoC target also maintained at the level of 0.3%. This shows that BCA’s asset quality continues to be well maintained, gross NPLs improved to 1.8%, while Loan-at-Risk (LAR) decreased to 5.3%.
3. Encouraging Credit Growth: Credit growth in FY24 was stable at 13.8% YoY, exceeding growth expectations. For FY25, management expects credit growth to graze in the range of 6% to 8%.

In-Depth Analysis of BCA’s Net Interest Margin (NIM)

BCA has managed to maintain NIM in the upper range of the guidelines set. With NIM at the level of 5.8%, management is confident that NIM will remain stable in the range of 5.7% to 5.8% for FY25. This indicates that the bank is able to manage funding costs effectively.

Stable Asset Quality: CoCs and NPLs

Looking at asset quality, BCA managed to maintain the CoC at 0.3%, in line with their guidance. The improved NPL rate is also an indicator that banks are able to cope with credit risks well.

Positive Credit Growth

Loan growth, which was recorded stable in FY24 at 13.8% YoY, was driven by the corporate segment which grew by 15.7%. BCA’s management targets more conservative growth in FY25 with a range of 6% to 8%.

Conclusion

BCA’s performance in FY24 shows the positive impact of an effective strategy in portfolio management and maintained asset quality. Despite the signs of credit growth in FY25, we remain optimistic about BCA’s fundamentals and its capacity to adapt to market dynamics. With this achievement, it is not surprising that many investors pay attention to BBCA as one of the stocks that should be taken into account in their investment portfolios.

For more information, please visit [BCA financial statement](https://www.bca.co.id/-/media/Feature/Report/File/Berita-Investor/2025/20250123-Laporan-Keuangan-Des-2024.pdf).