BBTN - To strengthened non-subsidized mortgage growth

Bank Tabungan Negara (BTN) will continue to support non subsidized mortgage growth through strengthening collaboration with developers. In 2023 the bank will start to increase its focus on middle to up segment housing with a tag price above IDR750mn, which previously mostly working on below IDR500 mn. (Source : Kontan). Comment: We like the BBTN aims to strengthen its housing development on middle to up ticket size, despite majority interest income are came from subsidized scheme. Loan growth which set at 12% yoy seems to be quite too optimistic in the uncertainty situation. However, we might see around three-quarters of the target likely to be more reachable as FLPP target has been set higher and scheme on subsidized mortgage housing diversification has been offered. Plan to strengthen non-subsidized segment will play important role to underpin earnings growth ing forward. Currently BBTN is non-rated, yet at around 0.5x ‘23F PBV and catalyst on the right issue impact, the stocks look attractive.