Jakarta, CNBC Indonesia – The management of PT Bank Tabungan Negara (Persero) Tbk (BBTN) revealed the performance of the Sharia Business Unit (UUS) in the first 9 months of this year or as of September 2020.
President Director of Bank BTN Pahala Nugraha Mansury said up to In the third quarter of 2020, Bank BTN’s UUS assets increased by 11.02% yoy (year on year) from Rp 29.46 trillion in the second quarter of 2019 to Rp 32.71 trillion.
According to Pahala, the increase was supported by an increase in the distribution of financing by 4.51% yoy from Rp 23.31 trillion in September 2019 to Rp 24.36 trillion in September 2020.
UUS Bank BTN also recorded the acquisition of DPK (third party funds) worth IDR 22.65 trillion in September 2020.
“With its business performance, BTN Syariah achieved a net profit of Rp. 112.34 billion in the third quarter of 2020,” he said in his presentation on the Performance of the Third Quarter of 2020, virtually in Jakarta, Thursday (22/10/2020).
In general, BTN recorded net profit which shot up 39.72% on an annual basis. The company recorded a profit of Rp 1.12 trillion per quarter III / 2020, up from Rp 801 billion in the same period the previous year.
Pahala said the various strengthening steps that have been taken by the company are starting to show positive results. 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,” explained the former President Director of Garuda Indonesia.
The financial statements of the issuer coded for BBTN shares show that the company’s net income was supported by lower interest expenses and efficiency. BTN interest expense was recorded to have decreased by 3.49% yoy to Rp11.95 trillion per quarter III / 2020.
The decrease in interest expense was supported by corporate action in cutting expensive funds.
This cut has been 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, CIR BTN dropped 141 bps from 57.13% in September 2019 to 55.72%.
Apart from successfully recording a reduction in interest expense and improving efficiency, the company continued to record an increase in deposits.
Bank BTN recorded deposits increased by 18.66% yoy from Rp 230.35 trillion per quarter III / 2019 to Rp273.33 in the same period this year.
The increase in TPF also pushed the Loan to Deposit Ratio (LDR) to a level of 93.26% in the third quarter of 2020. The positive acquisition of TPF also strengthened the company’s Liquidity Coverage Ratio (LCR) at the level of 178.40% per quarter III / 2020 or an increase from LCR in quarter III / 2019 of 131.12%.
Meanwhile, Bank BTN also noted that the company’s capital increased. The company’s Capital Adequacy Ratio (CAR) was recorded at 18.95% in September 2020, up from 16.88% in the same month last year. This increase also opened up wider space for Bank BTN to carry out its intermediation function.
In addition, BBTN in the third quarter of 2020 has distributed credit and financing worth Rp 254.91 trillion.
Subsidized housing loans (KPR) have been observed to be the main support for BBTN lending.
As of the third quarter of 2020, BBTN has provided subsidized KPR worth Rp. 116.32 trillion or an increase of 4.19% yoy from Rp. 111.64 trillion.
Bank BTN has also distributed non-subsidized KPR worth IDR 80.18 trillion per quarter III / 2020. With this value, the company has distributed mortgage loans totaling Rp. 196.51 trillion or an increase of 1.39% yoy from Rp. 193.8 trillion in the third quarter of 2019.
Thus, Bank BTN recorded that it had disbursed credit and financing in the housing segment amounting to Rp 231.34 trillion per quarter III / 2020.
In the non-housing loan segment, Bank BTN recorded credit disbursement of Rp 23.57 trillion per quarter III / 2020. With this performance, BBTN recorded an asset position of Rp 356.97 trillion or an increase of 12.89% yoy from Rp316.21 trillion in the third quarter of 2019.
Pahala also explained that in the third quarter of 2020, Bank BTN was still able to maintain asset quality.
Although the pressure due to the pandemic has not subsided, the company has succeeded in lowering the ratio of non-performing loans (NPL) net to 2.26% from the position in the same month in the previous year which was at the level of 2.33%.
“In line with the company’s commitment to improving asset quality, Bank BTN also continues to cultivate a coverage ratio. As of September 2020, BTN recorded a coverage ratio of 111.36% or a jump from 52.67% in the same month last year,” he explained.
Pahala said Bank BTN is also eyeing a position as the Best Housing Financing Bank in Southeast Asia by 2025.
“As the Best Mortgage Bank, we will record the highest profit and assets among similar players,” Pahala explained.
Various strategies, he added, have been prepared to get to that position in the next five years. This includes multiplying the acquisition of cheap funds and making access to home ownership more cheap and easy. The company will also provide various banking and investment facilities for all of its customers.
According to Pahala, Bank BTN will also build a quality portfolio with low NPL (non-performing loans) in line with sustainable business principles.
This housing finance specialist bank is also eyeing to become an innovator in the digital side and a home for the nation’s best sons and daughters.
“By being the best, we will also provide the best for the people of Indonesia, especially in terms of providing affordable housing,” said Pahala.
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