Indonesian lender BCA sets aside $28m for venture arm CCV
Bank Central Asia (BCA), Indonesia’s largest lender by market capitalization, has earmarked 400 billion rupees ($27.8 million) for its venture capital arm Central Capital Ventura (CCV), an official said on Thursday. senior.
CCV is an early-stage investor with over 26 companies in its portfolio. CCV invested from BCA’s balance sheet and primarily in fintech companies.
“This year we [will] allocate 400 billion rupees to develop our venture capital [activity]BCA President Director Jahja Setiaatmadja told reporters during an online briefing on the results.
While CCV’s main focus is on the fintech space, BCA’s top executive said, “we let [CCV] decide which sectors to enter. Among its recent investments, the venture capital firm has backed game developer Agate and SaaS company Verihubs.
CCV has, through its first $15 million fund, backed insurtech startup Qoala, payments company Wallex, and biometrics platform Element, among others. As reported by DealStreetAsia earlier, BCA injected an additional 200 billion rupees ($14.26 million) into CCV in 2019 to continue investing in fintech startups. Last year, Dutch early-stage fintech investor Finch Capital planned to set up a joint venture capital fund with CCV.
BCA, meanwhile, recorded a 15.8% growth in net profit to Rs 31.4 trillion in 2021 despite pandemic-induced challenges. In what can be seen as a sign of economic recovery, the country’s largest lender saw growth across all segments of its lending portfolio, including business, corporate, consumer and Sharia financing.
“It was, honestly, beyond our expectations,” Setiaatmadja said, noting that the lender was initially targeting a net profit of less than 10% in 2021 due to a lukewarm business climate.
BCA saw its mobile banking transactions increase by 50.4% on an annual basis to reach R4,049 trillion and its internet banking services increased by 33.7% annually to reach R15,118 trillion.
BCA shares rose 1.30% on Thursday and closed at Rp 7,800 each. BCA announced its results after market hours.
Bank Mandiri’s profits soar
State-owned bank Mandiri, Indonesia’s top lender by assets, recorded a 66.8% growth in net profit to 28.03 trillion rupiah in 2021 on the back of strong revenue and lower expenses.
Bank Mandiri’s return on equity reached 14.3%, above 8.12% in 2020.
Bank Mandiri has also reported significant growth in the number of users of its mobile applications. The lender launched two mobile apps last year: Kopra for businesses and Livin’ for individuals.
While Bank Mandiri is not a digital bank and still maintains 2,500 branches across the archipelago, the lender is pushing to use its app to meet most of its customers’ needs.