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BTN Reports Positive Performance In Q3 2024, Significant Increase In Loans And Third-Party Funds

Amidst the challenging environment of high funding costs and various macroeconomic obstacles, the credit distribution of PT Bank Tabungan Negara (Persero) Tbk, or BTN, continued to rise in the third quarter of 2024. This growth is supported by robust demand for both subsidized and non-subsidized housing loans, as well as an increase in Third Party Funds (DPK) that surpasses the national banking industry average. This achievement indicates that the core business of the company is experiencing healthy and solid growth. By the end of September 2024, BTN disbursed loans and financing amounting to IDR 356.1 trillion, reflecting an 11.9 percent year-on-year increase compared to the same period in 2023. This growth rate remains above the national banking industry's average credit growth of 10.9 percent year-on-year.

BTN's President Director, Nixon LP Napitupulu, noted that 2024 presents numerous challenges, particularly due to stagnant national household consumption and weakened purchasing power. Nevertheless, Nixon expressed optimism that the bank would maintain credit growth in line with the target of 10–11 percent for 2024. "Despite the challenges faced throughout 2024, BTN's intermediation function continues to operate optimally. This demonstrates BTN's capability to fulfill one of its primary roles, which is to stimulate the economy and provide financing access to the community, especially for low- and middle-income earners," Nixon stated in a press release received by Kompas.com on Thursday, November 28, 2024.

The dominance of subsidized housing loans and the demand for non-subsidized housing loans

Nixon indicated that the growth of BTN's credit is supported by a high demand for housing loans, particularly subsidized loans. This is due to the ongoing need for decent and affordable housing in Indonesia. Currently, there are 24.6 million homes classified as uninhabitable, with a national backlog of home ownership reaching 9.9 million units. Subsidized housing loans represent the largest contributor to BTN's overall credit portfolio. As of September 2024, the company has disbursed subsidized housing loans amounting to Rp 172.7 trillion, reflecting a year-on-year increase of 9.5 percent compared to the same period last year. Notably, 75 percent of BTN's subsidized loan debtors are millennials aged between 21 and 35, who are in their productive years. “Young generations, particularly those with low to middle incomes, continue to view home ownership as a primary necessity. This trend is expected to persist alongside national economic growth,” Nixon added. BTN also observes a promising outlook for non-subsidized housing loans, especially within the emerging affluent segment with ticket values exceeding Rp 750 million. By October 2024, the company has established nine sales centers, including in upscale areas such as Pantai Indah Kapuk, Pondok Indah, and Cibubur. Customers at these sales centers have an average savings balance three times higher than that of other non-subsidized customers, contributing over 20 percent to the total disbursement of BTN's non-subsidized housing loans. “We plan to increase the number of sales centers to 15 locations by the end of 2025 to fully leverage market potential,” Nixon stated.

Tag: Bank Tabungan Negara BTN Nixon LP Napitupulu