BBTN - Net profit soars 578% yoy as of Jan 26

BBTN - Net profit soars 578% yoy as of Jan 26 Bank Tabungan Negara (BBTN) started 2026 with a significant performance surge. Based on the monthly financial report as of January 2026, BTN's net profit surged 578% yoy to IDR230 bn, up from IDR34 bn in the same period last year. The increase in profit was supported by a 17.08% yoy growth in interest income. At the same time, interest expenses were successfully reduced by 14.53% yoy. As a result, net interest income (NII) surged by 79.46% yoy. From the intermediation side, BTN's third-party funds (DPK) grew by 11.52% yoy to IDR362.77 tn during this period. Meanwhile, credit distribution increased by 9.30% yoy to IDR341.45 tn. This growth drove BTN's total assets to rise by 12.26% yoy to IDR448.34 tn at the end of Jan26. BTN's President Director Nixon LP Napitupulu himself expressed optimism that the company's performance will continue to improve throughout this year. BTN targets a net profit growth of around 22% by the end of 2026, in line with balance sheet strengthening and business transformation strategies, including expansion beyond mortgages and the development of superapps. "We are optimistic that this year's performance will improve further along with the transformation and innovation carried out by the company," said Nixon in his statement. (Source : Kontan) Comment : Bank Tabungan Negara (BBTN) has delivered a stellar opening for 2026. The reported 578% net profit surge is not just a recovery; it’s a clear signal of structural efficiency and a "clean slate" strategy paying off. The most striking part of the report isn't just the profit number, but how it was achieved. While interest income grew a healthy 17.08%, the bank's ability to slash interest expenses by 14.53% is the real catalyst. The secular shift to lower interest rates offers a powerful tailwind. BBTN's historically high-cost deposit base means that CoF compression will significantly expand the NIM, driving margin outperformance. The continuation of FLPP and the new 3-mn-unit housing program constitute a critical, stable tailwind. We anticipate the successful Bank Syariah Nasional. This post UUS spin-off is expected to unlock latent value and provide a new, high-growth avenue for fund mobilization and financing. Maintain BUY, GGM-based TP of IDR1,530 (0.4x ’26F P/B).