Bank Tabungan Negara Net Profit Declines 26.79%
One of SOE, Bank Tabungan Negara Net Profit Declines 26.79%. Throughout 1Q20, Bank Tabungan Negara Tbk (BBTN IJ) recorded pressure on performance. BBTN profit recorded a decrease of 36.79% YoY from IDR 723 billion in 1Q19 to IDR 457 billion. Demand for non-subsidized mortgage loans (KPR) which has been sloping since the end of last year, plus the existence of the coronavirus COVID-19 pandemic, is the reason.
Bank Tabungan Negara explained that the growth of non-subsidized mortgage loans slowed down 1.2% YoY to IDR 72.06 trillion. While subsidized mortgage loans still grew well by 10.4% YoY to IDR 100.67 trillion. BBTN total loan portfolio grew 4.6% YoY to IDR 253.25 trillion. In the sharia financing segment, BBTN also grew well by 6.6% YoY to IDR 23.91 trillion.
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This is because 71%-72% of financing is channeled into the subsidized mortgage loans segment, said BBTN President Director Pahala N. Mansury. BBTN slow loan growth is also exacerbated by the improvement in credit quality. Gross non performing loans (NPL) increased from 2.92% in 1Q19 to 4.91% in 1Q20. However, Pahala said that the company currently has sufficient reserves to overcome the high ratio of bad loans.
As well as, Bank Tabungan Negara reserve ratio up to 1Q20 reached 105.7%, historically the BBTN reserve ratio has never been more than 50%. The slope of BBTN credit growth, coupled with the current pandemic conditions, is also one of the drivers of the company to correct its business targets. Credit growth, which had been targeted to reach 9.5% this year, was cut to 2%-3%.
Bank Tabungan Negara definitely proposes to revise the bank business plan, from 9.5% to 2-3%. In the midst of a pandemic BBTN are still optimistic about recording positive credit growth. We may also revise the profit not as big as our previous target of IDR 2.5 trillion, Pahala N. Mansury explained. Positive credit growth is still targeted by BBTN.
Because, at this time the company has also just received an additional allocation for housing finance liquidity facilities (FLPP) for 146,000 housing units. This will be the provision for the company’s credit expansion.
