September, NIM BCA 6.6%

Vice President Director of PT Bank Central Asia Tbk (BBCA) Setiaatmadja Jahja said that net interest margin (net interest margin / NIM) banks is still high because banks were still taking into account operational costs (overhead costs). BCA is still not lose his NIM level until today.

"We NIM BCA actually rose 0.3 percent from 6.3 percent position in September 2008 to 6.6 percent in September 2009," explained after the event Jahja Investor Summit at the Ritz Carlton Pacific Place Jakarta, Wednesday (2 / 12 / 2009).

Until now, the BCA has a standardized calculation of operational costs. First, take into account the funding base of deposits, savings and time deposits. The calculation of overhead costs and savings deposits must be greater with the overhead cost of deposits.

"Our operating costs are cheaper funds to spend on expensive funds of funds is different. So that will affect the structure calculations," said Jahja.

Second, BCA operational costs also take into account the influence of inflation. For this, the banks will not make the addition of branches as well as working capital increase (capital expenditure). The bank will only calculate rates based on cost plus overhead rate of inflation is happening.

However, because banks in Indonesia are still taking into account the expansion, then the necessary infrastructure is also growing. Impact given overhead cost would also rise.

"BCA and national banks in Indonesia are still watching the second aspect. Thus, costs too much out," he added.

In addition, banks also need to calculate the capital to support expansion. Especially for business growth, the bank also had to compete with international banks. Banks did not merely rely on rights issue or the issuance of subordinated bonds (subdebt), which should increase their own liquidity.

"To increase liquidity, banks need to increase profits. To increase profit, the bank's NIM should be high. If the NIM small, the bank did not dare to expand or increase their capital," he explained.

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