BBTN - Net profit inched up in 1Q23

Bank Tabungan Negara (BBTN) net income at IDR801 bn, inched up 3.42% yoy. Net interest income dropped 12.86% yoy as interest expenses rose 43.48% yoy. The positive PATMI growth was supported by lower provisions by 4.69% yoy. Loan grew 8.16% yoy, whole TPF increased by 10.01% yoy. (Source : Bisnis Indonesia). Comment : Overall we like BBTN remain booked positive PATMI and enjoy the recovery momentum. Negative net interest income growth was due to adjustment on rising benchmark rate. We think the bank could record soften interest expenses in the following quarter and thus could make earnings to grow higher.