Banking - Impact on the end of Covid-19 restructured loan to NPL

Banking - Impact on the end of Covid-19 restructured loan to NPL The credit restructuring policy due to Covid-19 is certain to end in March 2024. As a result, there is the potential for credit portfolios that were initially restructured to fall into the bad credit or NPL category after the relaxation is lifted. Indeed, on an ongoing basis, the Financial Services Authority (OJK) notes that the number of restructured loans continues to experience a downward trend. As of November 2023, the remaining credit amount is IDR285.32 tn with a recorded number of customers of 1.14 mn customers. (Source: Kontan) Comment: We believe bank under our coverage will continue in a good shape, even after the Covid19 restructured loan policy is fully lifted. NPL likely to continue manageable as AQ improvement remain intact. Likewise, for earnings growth, which likely to continue arrive within ‘23F range.