BBTN - Through KPR, BTN is optimistic credit will grow double digit in 2024

BBTN - Through KPR, BTN is optimistic credit will grow double digit in 2024 Bank Tabungan Negara (BBTN) is optimistic that credit growth in 2024 will be higher than 2023. Bank BTN targets credit growth of around 10%-11% next year. According to the bank, credit growth would still be driven by housing credit or KPR, both subsidized and non-subsidized. Meanwhile, non-subsidized credit will be encouraged by the government's 0 percent VAT incentive for house prices below IDR 2 billion. Moreover, BBTN will also continue to distribute MSME, retail and corporate loans as part of the company's credit portfolio. Apart from that, there are several strategic initiatives currently being undertaken to develop 3 sales centers by 2024 and further initiatives for high yield credit which will be able to encourage further credit growth. (Source: Kontan). Comment: We believe double digit growth target is achievable. Subsidized will continue as the backbone growth and we believe non-subsidized likely to record better growth. This should become as additional loan driver in 2024 as government VAT incentive will overall support mortgage demand to arrive at a better growth in ‘24F. On non housing loan, we expect growth will be higher than in ‘23F, as previously also proven that despite its specialized in mortgage, BBTN could also enjoy continuing loan demand appetite from corporate segment.