BTN Earns IDR 904 Billion Net Profit In The First Quarter Of 2025, Up 5.1 Percent

BTN (Photo: Website BTN)

PT Bank Tabungan Negara (Persero) Tbk (BTN) posted a net profit of IDR 904 billion in the first quarter of 2025, growing 5.1 percent year-on-year (yoy) from the same period last year of IDR 860 billion.

The increase in net profit was supported by consistent lending and financing, reduced cost of funds (cost of funds) and maintained financial fundamentals amid challenges of global uncertainty.

"BTN continues to carry out its strategy consistently in the midst of competition for liquidity and cost of funds, so that the company is able to score positive performance in the first three months of 2025," said BTN President Director Nixon LP Napitupulu quoting Antara.

BTN noted an increase in lending and financing, especially related to the housing sector, supported by stable economic growth and government programs for national housing development.

Nixon said that BTN's lending and financing reached Rp363.11 trillion until the first quarter of 2025, supported by increased demand for credit in the housing sector. The lending and financing rose 5.5 percent yoy compared to the first quarter of 2024 which amounted to Rp344.24 trillion.

BTN's lending and financing in the first quarter of 2025 was mainly driven by the housing ownership credit (KPR) business, both subsidies and non-subsidized, in line with the increasing demand for housing.

Until the end of March 2025, the distribution of BTN Subsidy Mortgages reached Rp179.70 trillion, an increase of 7.6 percent yoy compared to the same period last year. Meanwhile, Non-Subsidized BTN mortgages grew 8.1 percent yoy to Rp106.80 trillion in the first quarter of 2025.

Nixon said BTN was optimistic about the potential for credit growth in 2025 in line with the government's efforts to move the economy and reduce housing backlog by preparing decent and affordable housing for the community from various professions, including State Civil Apparatus (ASN), workers, health workers, teachers, journalists, Indonesian Red Cross officers, and Indonesian National Army (TNI) personnel and the Indonesian Police as well as other informal workers.

In addition, the potential increase in lending will also be triggered by BTN's strategic partnership initiative with investors from Qatar, namely the AlQilaa International Group for the construction of one million residential units in Indonesia, with an initial stage of 100,000 residential units.

This collaboration is a continuation of the cooperation agreement for national housing development which was signed by President Prabowo Subianto with the Representative of the Qatari Kingdom as well as the Chairman of the AlQilaa International Group Sheikh Abdulaziz bin Abdulrahman Al Thani in early January 2025.

BTN believes that the government's efforts to accelerate housing development will have a positive impact on various sub-sectors in the national housing ecosystem and the impact of its derivatives to other sectors. This will be prospective for BTN who are stepping towards Beyond Mortgage or more than just banks that distribute mortgages," said Nixon.

BTN also recorded an increase in the high-fine loan loan segment, namely People's Business Credit (KUR), Agunan Rumah Credit (KAR), and Light Credit (KRING), with total distribution reaching IDR 16.4 trillion, grew 9.5 percent yoy in the first quarter of 2025.

He said growth in the high yield loan segment was driven by the company's strategy to strengthen cooperation with a number of major BTN partner institutions.

Not only in terms of lending, BTN also recorded an increase in third party funds (DPK) to Rp384.70 trillion per quarter I-2025, an increase of 7.5 percent yoy compared to the same period last year of Rp357.74 trillion.

The growth of the DPK was supported by an increase in low-cost funds in the form of savings and demand (CASA). In the first quarter of 2025, BTN's CASA increased double-digit by 10.1 percent yoy, to Rp196.67 trillion, from the same period last year of Rp178.60 trillion.

The contribution of low-cost funds to the total BTN DPK rose to 51.1 percent from the first quarter of 2024 which was 49.9 percent, and reduced the cost of funds to 4 percent from March last year by 4.2 percent.

With the company's efforts to reduce funding and increase lending and financing, including to high-margin segments, BTN recorded an improvement in the net interest margin (NIM) to 3.6 percent in the first quarter of 2025, compared to the same period last year of 3.3 percent.

The growth of the BTN DPK was supported by the acquisition of low-cost retail funds and medium-sized institutions, including from digital channels.

"The BTN initiative to launch Super App Bale by BTN and Bale Corpora at the beginning of this year has yielded positive results, so we are optimistic that the digital channel will become a mainstay machine to drive the company's long-term funding," said Nixon.

BTN recorded significant growth in Bale by BTN with the number of users reaching 2.4 million per first quarter of 2025, up 76 percent compared to the same period last year of 1.4 million users.

Meanwhile, the value of Bale by BTN transactions reached IDR 22.3 trillion at the end of March 2025, an increase of 74 percent compared to March 2024.

While the number of transactions reached 492 million transactions as of March 2025, it jumped 172 percent compared to the first quarter of 2024 which amounted to 181 million transactions.

The company remains optimistic with the target number of users Bale by BTN which is expected to reach 3.6 million to 4 million by 2025.

Furthermore, Nixon said BTN maintains liquidity amid competition as reflected in the loan-to-deposit ratio (LDR) at 94.4 percent in the first quarter of 2025, down from the same period last year of 96.2 percent.

Meanwhile, along with the increase in credit and financing as well as DPK, BTN recorded an increase in assets to Rp468.53 trillion, growing by 3.2 percent yoy from the same period last year of Rp454.01 trillion.

"By maintaining consistent and stable business growth, we are optimistic that an asset target of IDR 500 trillion by the end of this year can be achieved," he said.

Ahead of the separation (spin-off) to become a Sharia Commercial Bank (BUS), BTN Syariah managed to record an increase in net profit of IDR 199 billion in the first quarter of 2025, up 21.1 percent yoy from the same period last year of IDR 164 billion.

The sharia business unit (UUS), which is ready to advance to this class, posted an increase in financing of 18.2 percent yoy to Rp46.26 trillion in the first quarter of 2025, compared to the same period in 2024 of Rp39.13 trillion. Meanwhile, DPK BTN Syariah rose 19.9 percent yoy to Rp51.39 trillion, from the first quarter of 2024 which amounted to Rp42.85 trillion.

Double digit growth in terms of financing and DPK boosted BTN Syariah assets to Rp61.19 trillion in the first quarter of 2025, up 11.6 percent yoy from the same period the previous year of Rp54.84 trillion.

"BTN Syariah will continue to strengthen its business as a solid provision to encourage even higher growth when the UUS officially becomes a BUS in the second semester of this year," said Nixon.