Bank BTN Earns IDR 1.5 Trillion Profit In The Third Quarter Of 2021, President Director: The Government Has Successfully Pushed The Property Sector Back To Life

JAKARTA – PT Bank Tabungan Negara Tbk (BTN) reports that the company has succeeded in collecting a net profit of IDR 1.5 trillion until the third quarter of 2021. This achievement grew by 35.3 percent compared to the same period the previous year with IDR 1.12 trillion.

President Director of Bank BTN Haru Koesmahargyo said this positive performance could not be separated from the support of various government regulations that encouraged the property sector to revive.

"The brilliant results that the company achieved are the result of support from the government, the Financial Services Authority (OJK), and Bank Indonesia (BI) which issued various policies for the National Economic Recovery (PEN) program," he said in a presentation today, Thursday, October 21.

According to Haru, the real implications are clearly visible in terms of lending, obtaining third party funds (DPK) and net income, which are on a positive path.

"The increase in net profit was supported by growth in lending and cost of funds efficiency," he continued.

In detail, the housing specialist bank recorded lending and financing of IDR 270.27 trillion as of September 30, 2021, an increase of 6.03 percent year-on-year (yoy) compared to the same period last year of IDR 254.91 trillion.

The segmentation of the mainstay of subsidized housing loans (KPR) is still the main support for growth with an increase of 11.74 percent yoy to IDR 129.98 trillion. This increase makes BTN still dominate the share of subsidized mortgages by 86 percent of the market share.

Meanwhile, non-subsidized mortgages also showed an increase at the level of 2.11 percent yoy to IDR 81.88. Then, in the non-housing segment, consumer loans and corporate loans also showed positive growth at each level of 21.28 percent to IDR 5.79 trillion and 89.77 percent to IDR 12.15 trillion.

The bank with the BBTN stock code claims the company's credit and financing growth is above the national (industry) average of 2.21 percent in the third quarter of 2021.

In terms of the ratio of non-performing loans (NPL) showed improvement to 3.94 percent from 4.56 percent.

Third-party funds which increased 6.56 percent yoy to IDR 291.26 trillion with the composition of low-cost funds increased to 41.53 percent from 36.96 percent.

"The increasing CASA (current account and savings account) composition has made the company manage to reduce the cost of funds by 170 bps on an annual basis from 4.98 percent to 3.28 percent in September 2021," Haru said.

The moncer performance of loans and deposits helped support the company's assets by 3.10 percent to IDR 368.05 trillion.

Just so you know, the growth of the property sector is supported by the success of the government which has successfully implemented a national vaccination program and provided a stimulus to encourage economic recovery.

Meanwhile, the stimulus provided by the government such as 0 percent VAT incentives for the property sector and the policy of PEN funds placed in national banks have made demand for home financing increase.

"We are optimistic that we will be able to play an active role in supporting the One Million Houses Development program and fulfill the main task of providing housing, especially for MBR (low-income people) and millennials," Haru concluded.