BBTN - Credit growth moves within target

BBTN - Credit growth moves within target Bank Tabungan Negara (BBTN) is trying to slow down its credit growth rate, which has grown quite rapidly since the beginning of this year. This step was taken to maintain the cost of funds in an era of high interest rates. These efforts are starting to be successful. The credit growth rate of this specialist bank in the housing sector until April 2024 has slowed slightly compared to the previous month. According to BTN's monthly report, the company's credit was recorded at IDR345.5 tn, or grew by 14.43% on an annual basis or year on year (yoy). Meanwhile, in March, growth reached 14.8% year over year. The credit growth movement of the issuer, codenamed BBTN shares, is monitored in line with the company's business direction. BBTN's credit growth as of April has begun to adjust to the company's business targets. (Source: Kontan) Comment : We like BBTN plan to manage the over growth to maintain earnings growth amid the special event such as the potential continuing higher interest rate. With a healthy and balance growth in interest income and interest expenses, NIM expansion should continue to intact. Moreover, amid the continuing uncertainty, we also expect a small hiccup on the potential loan repricing yield. Maintain BUY with GGM-based TP of IDR1,770 (0.6x ‘24F P/B).