BBTN - 1H23 analyst meeting KTA

Bank Tabungan Negara (BBTN) 1H23 net profit came in at IDR1,474 bn, grew by 0.23% yoy and dropped 16.0% qoq, driven mainly by mounting CoF by 42.59% yoy as transmission on benchmark rate increased remain in place. Loan grew by 7.52% to IDR307.6 tn, with non-housing loans grew higher (11.53% yoy) than housing loan segment at 6.97% yoy. Meanwhile TPF remain ample at IDR313.2 tn with the highest growth came in from CA at 42.3% yoy bringing CASA to 54.34% vs 44.73% in 1H22. (Source : Company, KB Valbury Sekuritas). Comment : In all, excluding the impact from the pandemic year, 6M23 earnings is inline and arrives within ours and consensus expectation at 46% and 45% (average 5yr 47%). On key metrics, we expect NIM to be better driven by soften CoF, continuing solid new booking and stronger high yield portion to total loan. Meanwhile we also view NPL could arrive lower as asset quality improvement should continue in place and thus will strengthened coll 1 and 2. With NII potentially on its way, more solid non-interest income in the following month and coupled with manageable provisions, ‘23F earnings likely to arrives within ours and consensus expectation.