BBTN - 9M23 net profit reached IDR2.31 tn

BBTN - 9M23 net profit reached IDR2.31 tn Bank Tabungan Negara (BBTN) pocketed a net profit of IDR 2.31 trillion, up 1.67% yoy. This achievement was mainly driven by the profit of the BTN Sharia Business Unit (BTN Syariah) which shot up 70.4% yoy. Total credit and financing worth IDR 318.3 tn, equal to around 9.87% yoy higher, driven by the growth of subsidized KPR by 11.87% yoy. On liabilities side, the bank collected third party funds (DPK) worth IDR 323.9 tn 3.54% yoy. (Source: Investor Daily). Comment: In all, 9M23* earnings was inline (KBVS) and below consensus ‘23F estimates with a run rate of 72%/70% vs 5yr hist average (excl. covid) of 74%. We expect the bank will become as one of the beneficiaries of peaking interest rate expectation. We also view that its sharia business separation plan likely to make meaningful impact to overall performance. Maintain BUY BBTN with GGM TP of IDR1,770 (0.7x ‘23F P/B).