BBTN - Earns profit of IDR904 bn in 1Q25

BBTN - Earns profit of IDR904 bn in 1Q25 Bank Tabungan Negara (BBTN) recorded an increase in net profit in the first quarter of 2025, supported by consistent credit and financing distribution as well as a decrease in the cost of funds amid the challenges of global uncertainty. The bank, listed under the stock code BBTN, posted a net profit of IDR904 bn in the first three months of 2025, growing 5.1% yoy from the same period last year, which was IDR860 bn. This publicly traded bank, BBTN, recorded a net profit of IDR904 bn in the first three months of 2025, growing 5.1% yoy from the same period last year, which was IDR860 bn. The increase in net profit was supported by the consistent growth in credit and financing disbursement as well as maintained financial fundamentals. The increase in net profit was supported by consistently growing credit and financing disbursements as well as maintained financial fundamentals. "BTN continues to implement its strategy consistently amidst liquidity competition and still high funding costs, allowing the company to achieve positive performance in the first three months of 2025," explained BTN President Director Nixon LP Napitupulu in his written statement on Thursday (April 24, 2025). (Source : Investor Daily) Comment : Softened funding cost became the main driver and made NII as well as PPOP grew solid by 17.1% yoy and 17.3% yoy, respectively. Worth to note that PATMI single digit growth was caused by mounting provisions (49.0% yoy). In all, 1Q25 net profit came in above consensus and our ‘25F PATMI for BBTN at a run rate of 29.5%/30.5% vs 26.3%. We also like BBTN steady lending growth in housing loan (6.4% yoy). On non-housing loan, corporate segment saw a healthy yearly and quarterly growth of 7.0% yoy and 7.8% qoq. Total TPF grew by 7.5% yoy, amid the continuing tight liquidity environment. CASA growth of 10.1% yoy was recorded higher vs high funding cost of TD growth (5.0% yoy). On key metrics, we like the NIM solid expansion by 35 bps to 3.6%, while key risk metrics is considerably manageable at 3.3% (NPL) and 1.1% (CoC). More detail on 1Q25 result will be delivered in BBTN 1Q25 company update. Maintain BUY with GGM TP of IDR 1,530/share, pegged at ‘25F P/B of 0.5x, while currently trades at 0.3x (lower vs Covid-19 era at 0.4x) or at its -2SD historical mean.