BBTN - Noted non preforming loan in Jiwasraya

BBTN - Noted non preforming loan in Jiwasraya Bank Tabungan Negara (BBTN) noted that Asuransi Jiwasraya still has bad credit or non-performing loans (NPL) of up to IDR500 bn. BBTN stated that the amount of jumbo bad credit came from the Home Ownership Credit (KPR) of Jiwasraya debtors who had died, and to this day have not been repaid and IFG is working on that. The NPL worth IDR500 bn was a credit life insurance product belonging to Jiwasraya debtors which was being restructured. (Source : Kontan). Comment: We expect the restructuring schemed will be achieved with IFG soon and will not impacting to BBTN’s FY24 book (expecting settled at the latest in 1H24) and thus will make BBTN npl became healthier. We also view that with its sustainable soft provisions and better asset quality both in ‘23F and another solid growth in 1H24F, will overall underpinned earnings to arrives at a similar year-on-year growth figures.