BTN Increases Profit Growth by 40.8 Percent in Semester I 2026

JAKARTA - Amid the global economic dynamics, PT Bank Tabungan Negara (Persero) Tbk (BTN) managed to record a net profit increase and improvement in asset quality in the first half of 2026. The company recorded consolidated net profit of IDR 2.40 trillion or grew 40.8 percent year-on-year (year-on-year/yoy) in the first half of 2026 from IDR 1.70 trillion in the same period last year. Meanwhile, non-performing loans (NPL) decreased from 3.3 percent in the first half of 2025 to 2.99 percent in the first half of 2026.

BTN President Director Nixon LP Napitupulu said the positive performance showed that BTN's transformation strategy, which is in line with the transformation direction of Danantara Indonesia, has been running according to target. According to Nixon, BTN not only continues to strengthen its position as the national housing financing leader, but also builds an integrated financial services ecosystem to support government priority programs, including the 3 Million House Program, while expanding access to financial services for the community.

"This achievement is the result of a decade-long transformation that we have consistently carried out. We are optimistic that by the end of the year, BTN's performance will continue to maintain a positive record in the first half of this year," said Nixon in a Performance Exposure Press Conference as of June 30, 2026 in Jakarta, Thursday, July 16.

Nixon explained that the transformation of BTN, which was built gradually for more than a decade, had started from strengthening its position as a housing specialist, followed by operational transformation, until now entering the beyond mortgage phase to build a more integrated financial services ecosystem for Indonesian families. In line with this direction, the Company also continues to strengthen the foundation of governance, risk management, and compliance through process digitization, balance sheet optimization, risk control strengthening, and the implementation of AI Governance to ensure healthy, resilient, and sustainable growth.

Until the first semester of 2026, BTN recorded the distribution of credit and consolidation financing of IDR 418.11 trillion, an increase of 11.2 percent year-on-year from IDR 376.11 trillion in the same period last year. This growth was supported by an increase in the housing credit sector of 4.8 percent year-on-year from IDR 317.77 trillion to IDR 332.88 trillion as of June 2026 and a surge in non-residential credit of 46.1 percent year-on-year from IDR 58.34 trillion in June 2025 to IDR 85.22 trillion in June 2026.

Subsidized home ownership loans (KPR) are still the driving engine of housing loans with an increase of 8.1 percent year-on-year from Rp182.17 trillion to Rp196.96 trillion as of June 2026. In addition, the Housing Program Loan (KPP) disbursed by BTN also reached Rp4.1 trillion as of June 2026, since it was released at the end of October 2025.

For the increase in non-residential loans, continued Nixon, the majority is supported by expanding penetration in various sectors such as education, health, government, financial institutions, to retail. The company also collaborates with multifinance companies to expand financing of motor vehicles as part of the strategy to diversify business beyond mortgages while increasing cross-selling to existing customers.

In line with the expansion of financing, BTN's total consolidated assets increased from Rp. 484.96 trillion to Rp. 545.16 trillion per semester I/2026 or grew 12.4 percent year-on-year. This growth reflects the Company's increasing capacity to support financing of the national housing sector while expanding its business in related ecosystems.

In terms of funding, the Third Party Fund (DPK) collected by BTN also reached Rp. 433.00 trillion per semester I 2026 or grew 6.6 percent yoy from Rp. 406.38 trillion in the same period last year. Nixon explained that BTN also continues to strengthen the structure of cheap funds as the foundation for long-term growth.

BTN has carried out various initiatives such as retail fund acquisition, increased digital transactions, strengthened payroll, and expanded cooperation with local governments and institutions.

These various initiatives have managed to keep the cost of funds in the range of 3.01 percent throughout the first half of 2026. According to Nixon, strengthening the funding structure is one of the Company's main priorities this year.

"We are not only pursuing credit growth, but also ensuring that this growth is supported by an increasingly stronger funding structure so that it is able to maintain the Company's profitability and business sustainability in the long term," said Nixon.

In line with the strengthening of the funding structure, until the first semester of 2026, Bale by BTN superapps have been used by more than 4.3 million users. The increase in users is supported by more than 344 thousand merchants, more than 14 thousand developers, and 59 local governments. In terms of transactions, the number and nominal transactions using Bale by BTN grew by 41.6 percent yoy and 55.3 percent yoy respectively as of June 2026.

Along with business growth, the quality of BTN's assets has also continued to improve. In addition to improving NPL, the company has also successfully reduced Loan at Risk (LAR) to 18.6 percent in the first half of 2026 from 20.2 percent in the same period last year. In the first half of 2026, the company also reduced the Cost of Credit (CoC) to 0.7 percent from 2.0 percent in the first half of 2025. The improvement in asset quality reflects BTN's success in implementing the principle of prudence, strengthening risk management, and improving the quality of the financing portfolio.

"The transformation we are carrying out is not only aimed at expanding the business, but building a foundation for healthy, efficient, and sustainable growth. With better asset quality, a stronger funding structure, and an ever-growing digital ecosystem, BTN is optimistic about being able to create long-term value for all stakeholders," said Nixon.

As part of the beyond mortgage strategy and strengthening inorganic growth, BTN has completed the first phase of the acquisition of the retirement loan portfolio of PT Bank SMBC Indonesia Tbk with a transaction value of around IDR 12.6 trillion.

Nixon explained that the acquisition strengthened the composition of BTN's non-residential loan portfolio while creating new sources of growth with a higher yield profile and risk that is maintained. All the acquired portfolios are quality loans (performing loans), so they support the improvement of the Company's asset quality and contribute positively to profitability.

"The strategy beyond mortgage does not mean abandoning the core business of housing financing, but complementing it so that BTN customers can access credit from the productive period to retirement. This step will also increase the resilience of BTN's business in the long term," said Nixon.

BTN will also continue the second phase of acquisition in the third quarter of 2026 worth around IDR 7.34 trillion, so that in total the Company will manage around 344,600 pension credit accounts. Nixon explained, through this inorganic growth strategy, BTN targets the non-residential credit share to increase gradually to around 30 percent of the total credit portfolio in the next five years, so that the Company's business structure becomes more balanced, resilient, and able to create sustainable growth.