BTN Syariah Profit Skyrocketed Above 70 Percent

Photo: Doc. BTN

JAKARTA - Profit from the Sharia Business Unit owned by PT Bank Tabungan Negara (Persero) Tbk (BTN) recorded a positive increase in the third quarter of 2023. The performance of BTN Syariah also boosted Bank BTN's net profit.

Meanwhile, Bank BTN's financial report shows that the net profit of the Sharia Business Unit (UUS) of BTN jumped 70.40 percent year-on-year (yoy) from IDR 235.27 billion in the third quarter of 2022 to IDR 400.89 billion.

President Director of Bank BTN Nixon LP Napitupulu said the positive performance of BTN Syariah was in line with the growing interest of the Indonesian people to buy a house through a sharia financing scheme.

"The majority of Indonesia is a Muslim who is a strong customer base for the housing financing business with a sharia scheme. We are optimistic that BTN Syariah has a large space to continue to grow so that it can serve the housing financing needs of the Indonesian people," said Nixon in Jakarta, Monday 27 November.

The net profit of BTN Syariah was contributed by the distribution of financing which rose to 17.94 percent yoy from Rp30.35 trillion to Rp35.79 trillion in the third quarter of 2023. Until the third quarter of 2023, housing financing was recorded to still dominate the distribution of financing in BTN Syariah or 97.43 percent.

BTN Syariah has also collected DPK worth IDR 36.25 trillion in the third quarter of 2023, an increase of 16.76 percent yoy from IDR 31.05 trillion in the third quarter of 2022. With this performance, Islamic assets recorded an increase of 17.26 percent yoy from IDR 41.29 trillion in the third quarter of 2022 to IDR 48.41 trillion in the third quarter of 2023.

Meanwhile, BTN Syariah's net profit also supports Bank BTN's net profit. As of the third quarter of 2023, Bank BTN recorded a net profit of IDR 2.31 trillion or according to the company's target. In addition to being contributed by the sharia business, Bank BTN's net profit was also supported by the company's positive business ranging from mortgages, high yield loans, to a surge in fee-based income.

Nixon said that until the end of the year, the company was optimistic that it would record performance on target.

"The enthusiasm of the housing sector and incentives for the Government will further encourage the housing sector financing business to grow positively until 2024. We continue to take advantage of this momentum with various business initiatives that we continue to carry out," said Nixon.

Bank BTN's financial statements show that as of the third quarter of 2023, the bank, which focuses on housing financing, recorded total credit and financing of IDR 318.30 trillion, an increase of 9.87 percent yoy. This increase was driven by the growth of Subsidized Home Ownership Loans (KPR) which rose 11.87 percent yoy from IDR 140.97 trillion to IDR 157.71 trillion in the third quarter of 2023.

Various BTN Bank initiatives also continue to show positive performance. The high yield loan segment, for example, shows a steady performance. Light Credit (Kring) for employees rose 17.59 percent yoy to IDR 4.32 trillion as of the third quarter of 2023. In the same period, Agunan Rumah Credit (KAR) grew 10.63 percent yoy to IDR 7.34 trillion. People's Business Credit (KUR) also jumped 162.82 percent yoy to IDR 1.60 trillion in the third quarter of 2023.

Bank BTN's digital transaction ecosystem also contributed a significant increase in fee-based income. In this ecosystem, Bank BTN offers complete services ranging from transactions for wholesale to retail through BTN Mobile. With these various performances, Bank BTN recorded a total fee-based income as of the third quarter of 2023, an increase of 67.32 percent yoy to Rp2.36 trillion.

On the other hand, Bank BTN has also raised third party funds (DPK) worth IDR 323.90 trillion, an increase of 3.54 percent YoY from IDR 312.84 trillion in the third quarter of 2022. Bank BTN's initiative to maintain cost funds (cost of funds/CoF) also increases the portion of low-cost funds.

The portion of low-cost funds (current account savings account/CASA) of Bank BTN recorded an increase of 358 basis points (bps) to 49.48 percent as of the third quarter of 2023. With this overall performance, as of the third quarter of 2023, the total assets of Bank BTN reached Rp409.68 trillion, an increase of 5.24 percent yoy.