BBTN - KPR distribution increased by 10.03%

BBTN - KPR distribution increased by 10.03% Bank Tabungan Negara (BBTN) KPR credit grew double digits 10.03% yoy with total KPR disbursed reaching IDR248.47 tn in 8M23. According to BBTN, credit growth is still supported by the housing sector, especially subsidized housing financing. Of the number of KPR debtors, the majority who take out KPR are millennials. This year the bank targeting approximately 220,000 KPR units. (Source : Kontan). Comment : BBTN likely to achieved its KPR subsidized distribution target. We also expect non subsidized housing will grew higher year-on-year, especially from mid to low ticket size. Despite taking lesser portion, non housing segment could contributes significant contribution following BBTN’s efforts to strengthen high yield segment. Maintain BUY, with target price of IDR1,770 pegged at 0.7x ‘23F P/B.