BBTN - Records write-off credit of more than IDR370 bn

BBTN - Records write-off credit of more than IDR370 bn Bank Tabungan Negara (BBTN) will continue to sell non-performing assets in 2024, both in the consumer credit segment and the commercial segment. Sales and repayment of non-performing assets, including loans that have been written off until the first semester of 2024, have reached more than IDR370 bn. The sale of non performing assets is carried out through several schemes, both through mortgage auctions and other sales schemes. Bank BTN also continues to make sales efforts, both through the BTN Cheap Homes portal so that more people can access collateral that is ready to be sold. So it is hoped that there will be more sales of problematic assets. Aside from retail sales, BTN also plans to carry out bulk sales in 2024. In 2024, Bank BTN targets the gross NPL ratio to be below 3%. Improving business billing processes and bulk sales are several strategic initiatives in 2024 to reduce the NPL ratio. (Source : Kontan) Comment : We believe NPL ratio could arrive better yoy with cost of credit to continue manageable. On this backdrop, we believe BBTN ‘24F earnings growth likely to remain arrive within management expectation. Bulk sales is another catalyst that we also think will create positive impact to BBTN’s ‘2024 book. Maintain BUY GGM TP IDR1,770 (0.6x ‘24F P/B).