BBTN - Spiked 28.15% yoy, BBTN PATMI reached IDR3.04 tn

PT Bank Tabungan Negara Tbk (BBTN) recorded net profit at IDR3.04 tn, or grew 28.15% yoy. Loan booked at 8.53% yoy to IDR298.28 tn, mainly driven by subsidized mortgage which grew by 11.61% yoy. Aside from its solid funding, the bank also enjoy higher TPF at IDR321.93 tn or 8.77% higher yoy as CASA rose by 19.13% yoy to IDR156.2 tn and thus resulting to CoF improvement from 3.13% to 2.60% in FY22. (Source : emitennews.com). Comment: BBTN’s FY22 PATMI beat KBVs and cons. estimate at 106.1%/105.1%. Aside from its solid earnings growth, which become as a od start in 2023, we think its fresh capital post right issue will strengthen the bank capacity to capture potential robust mortgage demand ing forward. We also like BBTN strategy focusing on high yield loan which could maintain NII remain solid and this should be translated to a better NIM. Effort for asset sales execution should also be translated as out of the box solution to improved NPL, while at the same time saving more in provisions and strengthening capital further.