The Property Sector Is Getting Enthusiastic, KPR BTN Business Grows 3 Percent

Subsidized house illustration. (Photo: Doc. Ministry of PUPR)

JAKARTA - PT Bank Tabungan Negara Tbk. (BTN) posted home ownership credit (KPR) growth of 3.32 percent year-on-year (yoy) to IDR236.57 trillion at the close of the first quarter of 2021.

Director of Consumer & Commercial Lending BTN Hirwandi Gafar said subsidized mortgages are still the company's mainstay to maximize the banking intermediation function. He noted, this segmentation grew by 9.04 percent yoy to IDR 122.96 trillion.

"Non-subsidized KPR also edged up 0.2 percent to Rp80.15 trillion," he said in a virtual press conference, Thursday, April 22.

Hirwandi added that the company this year received a mandate from the government to be able to distribute KPR with the Housing Finance Liquidity Facility (FLPP) subsidy scheme of 81,000 units.

"Up to now, BTN we have distributed as many as 32,000 units," he said.

Furthermore, credit in the non-housing segment was recorded to have grown by 2.87 percent yoy to Rp24.76 trillion. This growth was supported by increases in the consumer credit and corporate loans segments, which grew by 9.43 percent and 7.44 percent, respectively.

Overall, until the end of the first quarter of 2021, the distribution of bank loans and financing with the BBTN stock code was recorded at IDR 261.34 trillion, an increase of 3.19 percent from the same period in 2020.

"This level of growth is above the average industrial credit growth which is still minus," he said.

The positive books of the credit and financing sector also contributed to boosting BTN's assets to 375.73 trillion or increasing 21.92 percent on an annual basis.

Again Hirwandi said that the rate of increase in assets was also above the average increase in national assets, which was 7 percent as of January 2021.

"For us, sustainable growth is the main thing. So, we are trying to optimize the quality of our assets, "he said.

Then, the ratio of non-performing loans (NPL) is known to be at a maintained level of 1.94 percent. This level is down 44 basis points (bps) from 2.38 percent in the same period the previous year.

Meanwhile, the liquidity aspect also recorded a growth in third party funds (DPK) of 33.01 percent yoy to Rp294.91 trillion.

This provides room for the company to improve its loan to deposit ratio (LDR) to 88.62 percent, or a decrease of 2,561 bps from the previous record.