Analysts Project BTN On Track Performance Until The End Of 2023

Photo: Doc. BTN

Towards the end of 2023, analysts project that the performance of PT Bank Tabungan Negara Tbk or BTN (BBTN) can still reach the target or IDR 3.2 trillion.

Based on Bloomberg data as of Monday 6 November, analyst consensus projects that BBTN's net profit can reach IDR 3.2 trillion, supported by Net Interest Margin (NIM) which reaches 4.0 percent.

"ROE [Return on Equity] is estimated to reach 11.7 percent by the end of 2023," Bloomberg said Tuesday, November 7.

With this projection, as many as 21 analysts also recommend buying for BBTN with an average target price in the next 12 months of IDR 1,730 per lembang.

"Currently, BBTN shares are traded at 0.5X PBV for 2023/24F," the quote explained.

Meanwhile, Yap Swie Cu, analyst at Yuanta Sekuritas Indonesia, wrote that the performance of Bank BTN is believed to be still on track. One of the contributors, continued Yap, is the high-yield credit strategy.

"We maintain the recommendation of buying for Bank BTN," Yap wrote in his research quoted on Tuesday, November 7.

Similarly, Edward Lowis, Head of Research Sucor Sekuritas projects that BBTN will still record a net profit at the level of IDR 3 trillion by the end of 2023. One of the supports of the projection is the increase in credit which will continue this year and achieve growth of 10 percent.

"We still maintain the recommendation of buying," wrote Edward.

Previously, the management of Bank BTN also assessed that by the end of this year it could maintain credit growth at the double digit level. The existence of Government-Borrowed Value Added Tax (PPN DTP) incentives is a contributor to the company's positive performance.

Bank BTN Finance Director Nofry Rony Poetra explained that more than 90 percent of BTN mortgage portfolios are still dominated by houses with prices below IDR 2 billion, including the cheap housing segment. In addition to focusing on distributing subsidized mortgages, Bank BTN is also intensely targeting Non-Subsidized mortgages targeting the affluent emerging segment. This strategy was executed by opening 3 Sales Centers in BSD, Kelapa Gading, and Surabaya.

In addition, the next incentive is the provision of Administrative Fee Assistance (BBA) of Rp. 4 million for low-income people (MBR) when buying subsidized houses. The government has also raised the house price limit that can be purchased by MBR and obtained VAT exemption to Rp. 350 million, both landed houses and flats.

According to Nofry, this will benefit Bank BTN. The reason is, the company is the main contributor to housing financing, especially subsidized mortgages with a market share of 83 percent for the distribution of subsidized mortgages. With this BBA incentive, it will increase the potential for the realization of subsidized mortgages in the future.

"As of August 2023, we recorded KPR portfolios, both subsidies and non-subsidies, grew double digits above 10 percent. With these incentives, we are optimistic that the growth trend of mortgages will continue until the end of 2024," said Nofry.