KONTAN.CO.ID - JAKARTA. The market capitalization of Indonesian banks is getting more prominent in the regional market. Bloomberg noted, at the end of the fourth quarter of 2018, three local banks reached the top 10 of the largest banks in Southeast Asia.

PT Bank Central Asia Tbk (BBCA), the Kompas100 index constituent, has the largest market capitalization with a value of USD 49.01 billion. Concerning this achievement, BCA now sits as a bank with the second largest market capitalization in Southeast Asia

BCA's position is slightly lower than DBS Bank Singapore, which recorded a market capitalization value of USD 51.38 billion as of the end of December 2018. DBS is at the top of the bank with the largest market capitalization in Southeast Asia.

Two other local banks included in the top 10 list are PT Bank Rakyat Indonesia Tbk (BBRI) and PT Bank Mandiri Tbk (BMRI). The two Kompas100 index constituents, which are in third and sixth, each have a market capitalization of USD 38.32 billion and USD 25.29 billion.

BCA, as of the first quarter of 2019, posted a net profit of Rp 6.06 trillion or grew 10.1% year on year (YoY).

The increase in net income was in line with the increase in assets and credit. BCA assets were IDR 830.55 trillion, growing by 9.3% annually. BCA credit reached Rp 532.25 trillion, a growth of 13.2%.

President Director of Jahja Setiaatmadja said, this year BCA only set a conservative target. 8% -10% credit growth target. Target customer funds grow at a minimum of 6% -7%.

BRI has consolidated assets of Rp 1,279.86 trillion, growing 14.4% on an annual basis. This figure strengthens BRI's position as the bank with the largest assets in Indonesia.

The increase in BRI assets came from credit growth (12.9%) to Rp 866.46 trillion in the first quarter of 2019. Customer deposits increased by 13.2% to Rp 936.02 trillion.

BRI Managing Director Suprajarto said that he had prepared Rp 6 trillion for inorganic expansion. BRI will use part of the fund to acquire a general insurance company worth Rp 1.5 trillion.

"The acquisition value is above Rp. 1 trillion. We will be the majority shareholders there later, at least above 70%, "he said.

Editor: Hasbi Maulana