BBTN - Profit decreased to IDR101.6 bn in Jan25

BBTN - Profit decreased to IDR101.6 bn in Jan25 Bank Tabungan Negara (BBTN) started 2025 with a profit decline of 63.10% yoy. This is the impact of increased provisioning costs to maintain credit quality. As for the item that burdened BTN's performance at the beginning of this year, it was the impairment loss or provision for asset value decline. Its value increased by 43.63% yoy to IDR325.54 tn. This means that BTN has been preparing to anticipate global pressures by increasing its Allowance for Impairment Losses (CKPN). Although, the demand for BTN's credit continues to increase. BTN recorded total credit and financing reaching IDR 356.9tn or an increase of 7.11% yoy in Jan25. Whereas, sharia financing increased significantly by 18.2% yoy IDR44.6 tn. Recently, the President Director of Bank BTN, Nixon L.P Napitupulu, explained that the consistently positive credit growth shows that the demand for housing loans (KPR) has never waned, regardless of the challenges posed by economic conditions and consumer purchasing power. (Source : Kontan) Comment : BTN's strategy reflects a cautious approach, prioritizing credit quality and risk management in the face of potential economic headwinds. The increased provisioning, while impacting short-term profitability, positions the bank to navigate future challenges. While liquidity pressures are a concern, strong loan growth and diversified revenue streams provide positive indicators. BTN is showing a strategy of strength and safety, during economic uncertainty.