Jakarta. Indonesia's largest bank by market capitalization, Bank Central Asia (BBCA), has recorded a net profit of Rp 41.1 trillion ($2.64 billion), marking a 12.8 percent year-on-year (yoy) growth in the third quarter (Q3) of 2024.

“Credit growth until Q3 2024 reflects BCA's commitment to supporting national economic growth. Consumer credit demand has also been strong, particularly from the BCA Expoversary 2024 and BCA Expo 2024, which together garnered over Rp 78 trillion in mortgage and consumer loan applications,” said BCA President Director Jahja Setiaatmadja during a press conference on Wednesday.

As of the first nine months of this year, the bank's total loan disbursement reached Rp 877 trillion, an increase of 14.5 percent yoy. This figure surpasses the banking industry's loan growth of 10.85 percent yoy as of September 2024.

In terms of intermediation, BCA allocated Rp 395.9 trillion in corporate loans, growing 15.9 percent yoy. Commercial loans rose by 11.8 percent yoy to Rp 135.3 trillion, while loans to small and medium enterprises (SMEs) increased by 14.2 percent yoy to Rp 120.1 trillion.

“Total consumer portfolio grew by 13.1 percent yoy, reaching Rp 216.5 trillion, driven by mortgages that grew 10.7 percent yoy to Rp 130.4 trillion, and vehicle loans that increased by 17.9  percent yoy to Rp 64.1 trillion,” Jahja explained.

Meanwhile, the outstanding consumer loans, primarily credit cards, rose by 15 percent yoy to Rp 21.9 trillion.

Despite recent interest rate cuts, management expects limited impact on performance, citing high government bond yields and a low portion of benchmark loans.

Analysts Victor Stefano and Naura Reyhan Muchlis from BRI Danareksa Sekuritas maintain a buy rating on BBCA, setting a revised target price of Rp12,800, which represents a 3 percent increase in 2024-2025 earnings forecasts. They highlight key risks, including possible declines in loan yields and a deterioration in asset quality.