Jakarta. Bank Central Asia, Indonesia's largest lender by market value, booked a 10.7 percent increase in net income at Rp 5 trillion ($374 million) in the first quarter of this year, on the back of strong growth in proceeds from fees and loans.
BCA's net interest income – or income from lending after deducting the cost of paying depositors – increased by 3.1 percent to Rp 10.1 trillion in the first quarter.
The lender's non-interest income – from transaction fees, commissions and other gains – increased by 12.2 percent to Rp 3.4 trillion in the same period.
BCA's outstanding loans reached Rp 409 trillion at the end of March, 9.4 percent higher compared to the same period a year ago. The rising loan disbursement is in line with the lender's rising nonperforming loans, which reached 1.5 percent (gross), compared to 1.3 percent in December and 1.1 percent in March last year.
Despite the increase, the lender's NPLs were still lower compared to the industry average of 3 percent.
"BCA's focus in developing the franchise as a lender [with a focus on] transactions has enabled BCA to raise third-party funds in the midst of recovery in the national economy," BCA president director Jahja Setiaatmadja said.
The lender's third-party funds – including savings, current-account and term deposits – reached Rp 535.1 trillion, up 13.8 percent compared to the same period a year ago.
BCA remains as one of the country's biggest banks by assets with total assets of Rp 689.6 trillion as of the end of March, up 14.3 percent compared to a year earlier.