BBTN - Reports net profit of IDR1.1 tn

BBTN - Reports net profit of IDR1.1 tn Bank Tabungan Negara (BBTN) recorded a net profit of IDR1.1 tn in the 1Q26. This figure grew by 22.6% yoy from IDR904 bn compared to the same period last year. As of the 1Q26, BTN recorded total credit disbursement amounting to IDR400.63 tn, an increase of 10.3% yoy from IDR363.11 tn. In line with credit growth, Bank BTN's third-party fund collection (DPK) also grew positively by 9.9% yoy to IDR422.63 tn from IDR384.70 tn in the same period last year. CASA also continue to show improvement in line with the transformation in the retail segment and the presence of bale by btn. BTN's CASA recorded a 7.9% yoy increase to IDR 212.11 tn, accounting for 50.2% of the total third-party funds (DPK). The CoF of Bank BTN also increased to 3%, down from 4.0% in the same period last year. The performance of credit and DPK also supported the increase in BTN's assets by 10.5% yoy to IDR517.54 tn from IDR468.53 tn. BTN's President Director, Nixon Napitupulu, stated that in line with this achievement, BTN continues to pursue its noble purpose of supporting the community in owning homes by distributing Home Ownership Loans (KPR) reaching 6 mn units from 1976 to early April 2026, amounting to IDR530 tn. According to him, this achievement is inseparable from the government's support for the people, especially the lower-middle class. (Source : Bloomberg Technoz) Comment : Based on the 1Q26 performance report, Bank BTN (BBTN) is successfully executing a "dual-engine" strategy: maintaining its dominance in the subsidized housing market while aggressively modernizing its digital retail banking to lower costs. BBTN’s first-quarter earnings for 2026 hit the mark, landing right in line with both our forecasts and the broader market consensus. The bank delivered a solid 22.6% year-over-year growth, largely thanks to a significant drop in funding costs and keeping its provisions lean. The outlook remains bright. The "Bale by BTN" initiative is expected to be a game-changer for attracting low-cost funding. By shifting its funding mix and refining how it processes and originates loans, the bank is building a very sturdy cushion for its 2026 earnings. Maintain BUY, GGM-based TP of IDR1,530 (0.6x ‘26F P/B).