JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) is optimistic that by the end of 2025 the company's assets will reach IDR 500 trillion. This is in line with the acquisition of BTN assets until the end of 2024 which amounted to IDR 469.61 trillion, which rose 7% compared to 2023 which amounted to IDR 438.75 trillion.
"In the midst of the growing macroeconomic dynamics, BTN has prepared various strategic initiatives to go beyond mortgage with comprehensive banking solutions in 2025 in order to create more sustainable, healthy and solid business growth. Our optimism is also driven by the government's commitment to providing decent and affordable housing to all Indonesian people through the Three Million Houses Program," said BTN President Director Nixon LP Napitupulu in a written statement, quoted Wednesday, February 12.
Nixon revealed that the confidence that the asset company will reach Rp500 trillion will be supported by solid credit and third party funds (DPK). Throughout 2024, BTN managed to record lending and financing of Rp357.97 trillion or grew by 7.3 percent year-on-year (yoy) compared to the same period in 2023 of Rp33.69 trillion.
Nixon said that BTN's credit disbursement in 2024 was mainly driven by the mortgage business, both subsidies and non-subsidized, in line with the increasing demand for home millennials. Until the end of December 2024, the distribution of KPR Subsidy BTN reached IDR 173.84 trillion, up 7.5% yoy compared to 2023. Meanwhile, KPR Non-Subsidy BTN grew 10.2 percent yoy to IDR 105.95 trillion at the end of 2024.
In addition, BTN also posted growth in the high-speed loan segment, namely People's Business Credit (KUR), Credit Agunan Rumah (KAR), and Light Credit (KRING) reaching 13.9 percent yoy or to Rp16.4 trillion at the end of 2024. Nixon explained that the growth was supported by several strategic initiatives, such as cooperation with non-bank financial institutions for KUR, improving payroll services for KRING, and cross-selling through several customers. BTN's main institutions for KAR.
The quality of BTN's credit disbursement is also maintained by applying the principle of prudence and risk management, so that the gross non-performing loan (NPL) ratio is recorded at the level of 3.16 percent and is believed to continue to decline to a level below 3 percent by 2025.
"We are implementing technology to implement integrated and strict risk management in order to reduce NPL to a more sustainable level," said Nixon.
On the side of obtaining public funds, in 2024 BTN posted DPK growth of 9.1 percent yoy to Rp381.67 trillion compared to 2023 which amounted to Rp349.93 trillion.
This growth in DPK is supported by an increase in low-cost funds in the form of savings and demand (CASA) whose contribution reached 54.1 percent of the total DPK, an increase compared to 2023 of 53.7 percent. BTN's CASA growth at the end of 2024 was recorded at 9.8% yoy compared to 2023.
Nixon said the growth of the BTN DPK was higher than the growth of the industrial DPK of 4.48% yoy at the end of 2024 in line with the company's efforts to continue to increase transactions of low-cost retail funds and medium-sized institutions, including from digital channels. This commitment was realized through the initiative to transform the BTN mobile banking application, namely BTN Mobile to Bale by BTN.
BTN recorded rapid growth in its digital business since BTN Mobile was renewed in 2023. The number of Bale by BTN users previously known as BTN Mobile has reached 2.2 million by the end of 2024, an increase of 107 percent yoy compared to 2023. We are optimistic that the number of users can reach a minimum of 3.6 million to 4 million this year," said Nixon.
Furthermore, Nixon emphasized, until the end of 2024 BTN managed to maintain the loan to deposit ratio (LDR) at the level of 93.8 percent. The maintained LDR level shows the company's ability to manage its liquidity amid intense competition in the banking industry. Meanwhile, BTN posted a net profit of IDR 3 trillion by the end of 2024. Nixon said BTN was optimistic that total assets could penetrate IDR 500 trillion by the end of 2025 supported by positive growth prospects.
Along with BTN's corporate action to claim its sharia business unit, namely BTN Syariah to become a Sharia Commercial Bank which is targeted to be completed by 2025, solid growth is also reflected in the performance of BTN Syariah throughout 2024.
BTN Syariah posted a net profit of IDR 872 billion at the end of 2024, an increase of 24.2 percent yoy from IDR 702 billion in 2023. The increase in BTN Syariah's net profit was supported by financing which increased 18.3 percent yoy to IDR 44 trillion compared to IDR 37 trillion in 2023. Meanwhile, double digit growth was also seen in the acquisition of DPK BTN Syariah, which reached 18.7 percent yoy to IDR 50 trillion.
The achievement in terms of financing and DPK supports the increase in BTN Syariah assets to Rp61 trillion by the end of 2024, an increase of 11.6 percent yoy from the previous year of Rp54 trillion.
The rapid growth of the sharia business during 2024 is a strong capital for the BTN sharia business unit in its preparation to become a new Islamic banking entity. We are optimistic that BTN Syariah will become a strong competitor in the Islamic banking industry with its expertise in the field of sharia-based housing financing," concluded Nixon.
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