BBTN - Priority BTN Management Funds Reach IDR 40tn in Feb24

BBTN - Priority BTN Management Funds Reach IDR 40tn in Feb24 Bank Tabungan Negara (BBTN) noted that managed funds from the BTN Prioritas segment reached IDR40 tn, with a total of more than 30,000 BTN Prioritas customers as of February 2024. According to the Wealth Management Division Head of BBTN, the contribution of interest income from the BTN Prioritas segment to the total retail segment was more than 50%. Meanwhile, non-interest income contributed almost 20% of the retail segment. The third-party funds (DPK) of the BTN Prioritas segment currently make a large contribution to the total retail DPK of more than 50%. This year, the bank targets BTN Prioritas managed funds to grow by around 20% yoy. (Source : Kontan) Comment : We like the strong TPF growth in the BBTN priority segment and expect the target to be achieved. This middle-to-high segment could overall help BBTN’s TPF growth. We might witness the bank continuing to record solid earnings growth, supported by continuing loan growth, a stable NIM figure, and manageable cost-to-income coupled with steady provision expenses. The bank is eyeing its earnings to reach IDR3.9 tn, or in line with our ‘24F for BBTN PATMI of IDR3.8 tn.