In The Midst Of The COVID-19 Pandemic, Bank BTN's Profit Shot Up To 39.72 Percent

One of the branch offices of Bank BTN. (Photo: Bank BTN)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) recorded an encouraging performance in the third quarter of 2020. The issuer coded as BBTN posted net profit growth of 39.72 percent on an annual basis (year-on-year / yoy).

Bank BTN recorded a net profit of Rp1.12 trillion in the third quarter of 2020. In the same period in the previous year, Bank BTN recorded a net profit of Rp. 801 billion.

President Director of Bank BTN Pahala Nugraha Mansury said that the growth in net profit could not be separated from the various strengthening steps that had been taken by the company. Bank BTN, he continued, has strengthened in terms of asset quality, liquidity, capital, business, and efficiency measures.

"In the midst of pressure due to the pandemic, the increase in Bank BTN's net profit is proof that our strategy is on the right track. Until the end of the year, we are optimistic that the net profit target will be achieved," Pahala explained at the Bank BTN Performance Exposure for the third quarter of 2020. virtual, Thursday 22 October.

The financial statements of Bank BTN show that the company's net income is supported by lower interest expenses and efficiency. BTN interest expense was recorded to have decreased by 3.49 percent yoy to IDR 11.95 trillion per third quarter of 2020.

The decrease in interest expense was supported by corporate action in cutting expensive funds. This cut was able to reduce the Cost of Fund (CoF) to 70 basis points (bps) since the end of 2019.

The efficiency strategy carried out by Bank BTN has also succeeded in reducing the Cost to Income Ratio (CIR). In September 2020, BTN's CIR fell 141 bps from 57.13 percent in September 2019 to 55.72 percent.

In addition to successfully recording a reduction in interest expense and improving efficiency, the company has continued to record an increase in third party funds (DPK). Bank BTN recorded DPK increased by 18.66 percent yoy from Rp. 230.35 trillion per quarter III 2019 to Rp. 273.33 in the same period this year.

The increase in DPK also pushed down the Loan to Deposit Ratio (LDR) to a level of 93.26 percent in the third quarter of 2020. Positive TPF gains also strengthened the company's Liquidity Coverage Ratio (LCR) at 178.40 percent per quarter III 2020 or an increase from LCR. in the third quarter of 2019 amounted to 131.12 percent.

Meanwhile, Bank BTN also noted that the company's capital increased. The company's Capital Adequacy Ratio (CAR) was recorded at 18.95 percent in September 2020, up from 16.88 percent in the same month last year. This increase also opened up wider space for Bank BTN to carry out its intermediation function.

In addition, Bank BTN in the third quarter of 2020 has distributed credit and financing worth Rp254.91 trillion. Subsidized housing loans (KPR) have been observed to be the main support for Bank BTN lending.

As of the third quarter of 2020, Bank BTN has provided subsidized mortgages worth IDR116.32 trillion or an increase of 4.19 percent yoy from IDR111.64 trillion. Bank BTN has also distributed non-subsidized KPR worth IDR 80.18 trillion per third quarter of 2020. With this value, the company has distributed mortgage loans totaling IDR 196.51 trillion or an increase of 1.39 percent yoy from IDR 193.8 trillion in the third quarter of 2019. .

Thus, Bank BTN recorded that it had disbursed loans and financing in the housing segment amounting to IDR 231.34 trillion per quarter III 2020. In the non-housing loan segment, Bank BTN recorded credit disbursement of IDR 23.57 trillion per quarter III / 2020.

With this performance, Bank BTN recorded an asset position of IDR 356.97 trillion or an increase of 12.89 percent yoy from IDR 316.21 trillion in the third quarter of 2019.