BBTN - Cuts bad loans by around IDR900bn

BBTN - Cuts bad loans by around IDR900bn Bank Tabungan Negara (BBTN) has succeeded in reducing low quality assets or NPL by around IDR 900bn in. According to the bank, the NPL settlement was a concrete manifestation of BUMN synergy as well as Bank BTN's efforts to continually improve asset quality. BBTN is optimistic that the improving NPL ratio could overall encourage BBTN's business growth in the future and was in line with the company's business direction. (Source: Kontan) Comment: Cutting bad loans is common steps taken by bank to improve its asset quality and thus should be translated as a better potential earnings growth going forward. With its continuing FLPP stable growth coupled with a potential non-subsidized better performance as well as from its non-housing segment will overall underpin BBTN PATMI growth, in our view. Maintain BUY BBTN GGM-based TP of IDR1,770 (0.6x ‘24F P/B).