BBTN – Revised 2024 loan growth target

BBTN – Revised 2024 loan growth target Bank Tabungan Negara (BBTN) has revised its credit distribution target to around 11% by the end of 2024. This step was taken as a response to the high interest rates environment. In the first quarter of 2024, BTN recorded credit disbursement growth of 14.8% on an annual basis (yoy) reaching IDR344.2 tn compared to IDR299.7 tn in the same period last year. However, BTN has not set a credit distribution target that is equal to or higher than the achievement in the first quarter of 2024. President and Director of Bank Tabungan Negara, Nixon Napitupulu, explained that although BTN recorded solid growth they did not project credit growth above the achievement in the first quarter of 2024. BTN revised its credit growth projection from 13%–14% to 10%–11%. (Source : Kontan) Comment : BBTN's new loan growth guidance this year from 13%–14% yoy to 10%–11% yoy is still above our ‘24F loan growth forecast for BBTN of 9.5% yoy. Despite the fact that the fact that subsidized loans will continue to drive BBTN loan growth, we expect the non-subsidized mortgage and non-housing portion of the total loan to continue to improve. Our main concern lies on the higher cost of borrowing and soft asset quality improvement. 1H24 and 3Q24 results will become the crucial keys, ceteris paribus. Maintain BUY GGM TP IDR1,770 (0.6x ‘24F P/B).