BBTN - Has distributed FLPP mortgages for 50,433 housing units year to date

BBTN - Has distributed FLPP mortgages for 50,433 housing units year to date Until March 2024, Bank Tabungan Negara (BBTN) has distributed 50,433 Home Ownership Credit (KPR) Housing Financing Liquidity Facility (FLPP)-subsidized houses for low-income people (MBR) worth IDR8.136 tn, or grew by around 52.17% yoy. According to BBTN, it is estimated that the target by the end of the year for FLPP KPR distribution can be completed in August 2024. The bank is currently developing a subsidized KPR scheme that is equitable and affordable, together with a housing financing ecosystem that involves housing stakeholders (Ministry of Finance, Ministry of PUPR, SMF, BP Tapera, and Land Bank, including housing development actors). Apart from that, developing partnership cooperation where Bank BTN has collaborated with developer partners of more than 7k developers and more than 3k notaries, expanding relationships with strategic agencies in the housing sector and supporting subsidized KPR, B2B direct sales strategies, and developing KPR-based communities such as barbers, online motorcycle taxis, IKAPPI, Indomaret, and others. (Source: Kontan). Comment : We like the BBTN YTD24 accomplishment on FLPP distribution and believe that the ‘24F target is likely to be achieved before the end of this year. Its partnership, collaboration, and ecosystem development will help its earnings grow going forward. We think the bank will continue to benefit from the continuing potential growth of the FLPP segment. As a solid mortgage player, we also deem that its non-subsidized mortgage segment will play an important role in overall loan growth in the near future.