BCA and BRI’s Deposit Performance: A Tale of Two Banks
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Analysis of deposit growth and CASA ratio trends in Indonesia’s banking giants.
Indonesia’s Banking Giants: A Comparative Look at Deposit Growth
Two of Indonesia’s leading banks,bank Central Asia (BCA) and Bank Rakyat Indonesia (BRI),have recently released their financial performance data (bank only) up to February 2025,shedding light on their success in attracting public funds. These figures offer valuable insights into teh current state of the Indonesian banking sector.
According to Bank Indonesia (BI), the total Third Party Funds (DPK) in the banking system reached Rp 8,612.5 trillion in February 2025, marking a 5.1% year-on-year (yoy) increase. This growth surpasses the 4.8% yoy growth observed in the preceding month, indicating a positive trend in overall deposit accumulation across the Indonesian banking landscape.
BCA’s Strategic Focus on Low-Cost Funds
While BCA experienced a more moderate DPK growth of 3.89% yoy, reaching Rp 1,117.67 trillion, their strategy centered around bolstering low-cost funds proved effective. This approach emphasizes the acquisition of funds through demand deposits and savings accounts, which typically carry lower interest rates compared to time deposits.
Specifically, BCA’s current account balances surged by 6.22% yoy to Rp 352.91 trillion, while savings accounts saw a 5.63% yoy increase to Rp 568.59 trillion. Conversely, time deposits experienced a contraction of -4.42% yoy,settling at Rp 196.16 trillion.
this strategic emphasis on low-cost funds resulted in a combined growth of 5.85% yoy, bringing the total to Rp 921.50 trillion. Consequently, BCA’s Current Account and Savings Account (CASA) ratio strengthened significantly, climbing from 80.92% to an notable 82.45% as of February 2025. A high CASA ratio is generally viewed favorably, as it indicates a bank’s ability to attract and retain low-cost deposits, thereby improving profitability.
In contrast to BCA, BRI reported a slight contraction in total DPK, reaching Rp 1,380.91 trillion by February 28, 2025. The figure declined by 0.62% yoy, although this was an improvement compared to the 1.57% yoy contraction experienced in January 2025.
Similar to BCA,BRI’s DPK performance was supported by growth in low-cost funds,notably as the volume of time deposits decreased. BRI’s time deposits experienced a notable decline of 9.85% yoy, falling to Rp 485.33 trillion.
Analyzing the CASA Ratio: A Key Indicator of Banking Health
The CASA ratio is a critical metric for evaluating a bank’s financial health. It reflects the proportion of a bank’s total deposits held in current and savings accounts, which typically bear lower interest rates than fixed deposits. A higher CASA ratio generally translates to lower funding costs and improved profitability for the bank.
Such as, consider a hypothetical scenario: Bank A has a CASA ratio of 75%, while Bank B has a CASA ratio of 50%. all other factors being equal, Bank A is likely to have a higher net interest margin (NIM) due to its lower cost of funds.
As of late 2024, major banks in developed economies like the US and Europe have been actively trying to increase their CASA ratios in anticipation of potential interest rate hikes.This strategy allows them to maintain profitability even as borrowing costs increase.
Conclusion: Strategic Divergence in Deposit Management
While both BCA and BRI are navigating the dynamic Indonesian banking landscape, their approaches to deposit management reveal strategic divergence. BCA’s focus on aggressively growing low-cost deposits has resulted in a strengthened CASA ratio, while BRI is working to mitigate deposit contraction by also emphasizing CASA growth. The coming months will reveal which strategy proves more effective in the long run.
