BTN Records Housing Loans Reaching IDR 292.7 Trillion In The First Quarter Of 2024

PT Bank Tabungan Negara (Persero) Tbk or BTN recorded total housing loans and financing in the first quarter of 2024 reaching IDR 292.7 trillion, up 10.7 percent compared to the same period last year of IDR 264.5 trillion.

In a press conference in Jakarta, Thursday, April 25, BTN President Director Nixon LP Napitupulu said that housing loans and financing still contributed a majority of around 85 percent of all credit and financing disbursed by the company.

Of the total amount of housing loans and financing, the distribution of subsidized mortgages in the first quarter of 2024 was still the largest reaching IDR 167 trillion, an increase of 12.3 percent compared to the same period last year of IDR 148.6 trillion. Meanwhile, in non-subsidized mortgages, the company recorded an increase of 11.2 percent to IDR 98.8 trillion from IDR 88.8 trillion in the first quarter of 2023.

"Our strategy of targeting more non-subsidized mortgage distribution to the upper middle and upper segment has begun to show results," said Nixon, as reported by Antara.

As for the mortgage with a ticket size above Rp750 million, BTN recorded growth of 176.6 percent yoy in the first three months of 2024. The total distribution reached Rp1.05 trillion, an increase compared to the same period last year of Rp380 billion.

Overall, BTN posted a total credit and financing growth of 14.8 percent during January-March 2024 to Rp344.2 trillion compared to the same period in the previous year of Rp299.7 trillion.

In addition to being supported by housing credit and financing, the total credit and financing growth of BTN is also supported by high-margin loans (high-yield loans), which according to the company is quite attractive to the public, including people's business loans (KUR), light credit (KRING), and home collateral loans (KAR).

The company noted that the distribution of BTN KUR reached Rp387 billion, an increase of 78.1 percent compared to the same period the previous year of Rp217 billion.

Meanwhile, the distribution of KRING grew 30.7 percent yoy to Rp572 billion in the first quarter of 2024 and the distribution of KAR increased 16.5 percent yoy to Rp525 billion.

The ratio of BTN gross non-performing loans (NPL) in the first quarter of 2024 fell to 3 percent, from the previous 3.5 percent in the first quarter of 2023.

The loan-at-risk ratio (LAR) also recorded a decline to the level of 21.6 percent from the previous 24.2 percent. Meanwhile, NPL coverage increased to 152.8 percent from the previous 145.9 percent in the first quarter of 2023.

Nixon said that BTN's performance in the first three months of 2024 as a whole was better than the same period in 2023, including credit growth which reached more than 14 percent.

Even so, BTN is trying to reduce credit growth to return to the 10-11 percent level at the end of the year in anticipation of the impact of the increase in the benchmark interest rate or BI-Rate as well as global geopolitical and macroeconomic conditions.

"(The decline in credit growth) in anticipation of liquidity which may later become more expensive, the funds become more expensive because of the increase in BI-Rate and so on. So that interest competition will be more challenging today," said Nixon.