Banking - Banks increasing its coverage ratio

Despite economic activity continue to improve post pandemic, several banks remain cautiously optimistic to respond with the future economic condition. Such condition has made several bank to prepare increasing their npl coverage. One of the bank, namely BBTN, plan to strengthened its coverage ratio gradually to 200% at the end of 2025. (Source: Kontan). Comment : We like BBTN plan and others bank which we believe will continue to manage their coverage ratio at a higher rate. Increasing coverage ratio will minimize risk. Along with the asset quality improvement and better loan growth as well as stronger coverage ratio will overall make banks earnings growth more sustain at a healthier rate.