BBTN - Distribution of KPR subsidy reached IDR162 tn in Nov’23

BBTN - Distribution of KPR subsidy reached IDR162 tn in Nov’23 Bank Tabungan Negara (BBTN) continues to strive to increase the distribution of subsidized credit. It was recorded that until November 2023, outstanding BTN subsidized KPR reached IDR162 tn, growing 12.3% compared to November 2022 which was IDR144 tn. According to the bank, the increase in subsidized KPR distribution was certainly obtained from a number of strategies and initiatives, such as fast KPR approval process and developing the area where the subsidized house is being built. BBTN is targeting KPR growth of around 10% -11% in 2024. (Source: Kontan). Comment: We believe KPR subsidy will continue become BBTN’s backbone loan growth and and such we think the target is achievable. On the other hand, we also expect non-subsidy mortgage and non-housing loan growth will continue solid. This will overall support and cushioned any potential weakening demand and higher risk from low-income tier. Its non-subsidiy mortgage will become as the benefit of latest government VAT relaxation policy. Maintain BUY with GGM-based TP of IDR1,770 (at 0.6x ‘24F P/B).