BBTN - Records increasing TPF foreign currency by 70% yoy

BBTN - Records increasing TPF foreign currency by 70% yoy Bank Tabungan Negara (BBTN) recorded an increase in foreign exchange deposits reaching 70% yoy IDR300 bn as of April 2024. According to the bank, forex retail deposits at BTN show an increasing trend, both in the number of accounts and nominal deposits, which are dominated by foreign currency deposit products. The current foreign exchange savings portfolio is still relatively small compared to BBTN's total DPK. However, BBTN continues to strive to provide optimal foreign exchange products and services for customers so that it can strengthen BBTN's position as a foreign exchange bank in Indonesia. According to BBTN, the trend of foreign exchange deposits is indeed increasing at the moment, there are many foreign currency funding products that BTN is currently developing on the savings side. (Source: Kontan) Comment : We believe the increasing TPF in foreign currency will overall help total TPF grow higher. A stronger foreign exchange third-party fund could become a natural hedge in the period of strengthening DXY. We expect the bank to continue executing more time deposit switches as it will benefit its cost of funds and underpin NIM to arrive higher than ‘24F expectations. Maintain BUY GGM TP IDR1,770 (0.6x ‘24F P/B).