Loan quality: Women look at gold bracelets displayed for sale at a gold and jewellery shop in Jakarta. BCA says its loan growth remains stable and in line with the set 6% to 8% target for this year, as it continues to push for lending to all sectors and segments. — Reuters
JAKARTA: Bank Central Asia (BCA) has announced a plan to buy back up to Rp 5 trillion of its shares to maintain stock price stability.
The share buyback programme, set to run from Oct 22 to Jan 19, 2026, comes after the company announced its third quarter performance on Monday.
BCA executive vice-president corporate communications and social responsibility Hera F. Haryana told a press conference on the same day that the decision would not affect the company’s financial performance or operations.
She added that the share buyback period could be shortened in accordance with relevant regulations.
“In its operations, BCA always adheres to the principles of good corporate governance (GCG) and complies with all applicable rules and regulations,” Hera said.
The company’s shares, traded under the ticker code BBCA, rose more than 5.4% to 8,300 rupiah in Tuesday’s morning session but were still down more than 16% since the beginning of the year.
In the third quarter of this year, BCA booked a net profit of 43.4 trillion rupiah, up 5.7% year-on-year (y-o-y).
The country’s largest private lender reported relatively low loan issuance growth of 7.6% y-o-y to 944 trillion rupiah.
BCA president director Hendra Lembong said the increase was supported by “a credit quality expansion and maintained company liquidity”.
Looking ahead, Hendra expected loan growth to improve in the next quarter, driven by businesses preparing for the upcoming Ramadan, which falls in the first quarter of 2026.
The company said its loan growth remained stable and in line with the set 6% to 8% target for this year.
“Supported by adequate liquidity, BCA continues to push for lending to all sectors and segments, while prioritising prudence through disciplined risk management,” read a statement issues on Monday.
Corporate lending stayed atop with 10.4% annual growth, followed by commercial loans at 5.7% and small and medium enterprises loans at 7.7% y-o-y.
Meanwhile, consumer loans grew at a slower pace of 3.3% y-o-y to 223.6 trillion rupiah, driven by rising mortgage loans.
The company emphasised that it had maintained its loan quality, with the loans at risk share down to 5.5% in the third quarter from 6.1% last year.
Meanwhile, the nonperforming loans ratio stood at 2.1%. BCA also saw increasing third party funds (DPK), which were up 7%, thanks to growing current account savings, which contributed 83.8% of total DPK at 999 trillion rupiah.
Indonesia’s banking industry has seen slower credit growth this year, with Bank Indonesia (BI) reporting recently that credit expansion in August remained below target despite improving liquidity conditions.
According to BI, bank credit grew 7.56% in August, up from 7.03% in July, but the growth was not strong enough to significantly boost economic activity in the country.
BI has projected loan growth this year to fall in the range of 8% to 11%, which follows a downward revision in May from the previous projection of 11% to 13%.
The central bank also reported that a large portion of approved loan facilities had yet to be used, with undisbursed loans reaching 2,372.1 trillion rupiah in August, accounting for 22.71% of total credit lines. — The Jakarta Post/ANN
