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Page 1
FY 2023
Results Presentation
PT Bank Tabungan Negara (Persero) Tbk
Jakarta, 12 February 2024
Page 2
Disclaimer
IMPORTANT: The following forms part of, and should be read in conjunction with, the other material in this
presentation
This presentation contains privileged information and has been prepared solely for the recipient(s). By accepting a copy
(or the contents) of this presentation, you are deemed to have acknowledged and agreed to the provisions appearing
hereinafter. The existence of this presentation and the contents thereof should not be disclosed, reproduced, copied or
otherwise disseminated to any other person or published, in whole or in part, without prior consent of PT Bank Tabungan
Negara (Persero) Tbk. (“BTN” or the “Company”).
This presentation does not constitute or form part of any offer for sale or invitation, or solicitation of an offer, to subscribe
for or purchase any securities and neither this document nor anything contained herein shall form the basis of or be relied
on in connection with any contract or commitment whatsoever. Any decision to purchase or subscribe for securities should
be made only on the basis of the information contained in a prospectus or offering circular issued by the Company in
connection with any such offering.
Information and opinions contained in this presentation are provided for reference of the recipients only and are not to be
relied upon as authoritative or without the recipient’s own independent verification or taken in substitution for the exercise
of the recipient’s own judgment. Any reference to past performance should not be taken as an indication of future
performance. In furnishing the presentation, the Company has not undertaken to provide the recipient(s) with access to
any additional information or updates. None of the Company warrant or guarantee whatsoever that this presentation will
lead to the successful completion, or consummation, of any transactions whether or not under contemplation.
Accordingly the Company disclaims any liability whatsoever in connection therewith and with any decisions that might be
taken upon the basis of this presentation, directly or indirectly. In particular, the Company owe no duty to the recipient
(except as required by applicable laws) to exercise any judgment on its behalf as to the merits or suitability of any
transaction. The recipient agrees that the merits or suitability of any such transaction to its particular situation will be
independently determined by the recipient including consideration of the legal, tax, accounting, regulatory, financial and
other related aspects there of.
2
Page 3
Table of Contents
Management Highlights 05
Initiatives in 2024 17
5-Years Financial Performances 23
Asset Quality 35
Sustainable Finance 41
Sharia Business 51
Investment Proposition 57
Appendix 62
3
Page 4
Securing All Time High Numbers in 2023
Total Assets +9.1% yoy Total Deposits +8.7% yoy Total Loan & Financing +11.9% yoy
(IDR Tn) (IDR Tn) (IDR Tn)
439 350
402 322 334
361 372 296 298
279 275
312 256 260
225
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Net Profit CASA Ratio NPL Gross
(IDR Tn)
+15.0% yoy (%) +521 bps (%) -37 bps
3.5 53.7 4.8
3.0 4.4
2.4 48.5
1.6 44.3 3.7
43.4 3.4
41.1
3.0
0.2
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
44
Page 5
Management Highlights
Page 6
Macroeconomy Highlight
Declining Inflation Rate and steady BI Rate resulted on a stable Household Consumption and Economic Growth amidst global uncertainty
Stable BI Rate amidst declining inflation and volatile rupiah HH Consumption grew inline with increasing CCI
Headline CPI (% yoy) BI Rate USD/IDR (RHS) Rp
HH Consumption Consumer Confidence Index (RHS)
% % Index
7.0 8.00 140.00
15,783 16000
6.5 6.00 4.5 130.00
6.0
6.0 15500 4.00
5.5 120.00
5.0 2.00 123.7
110.00
4.5 15000 0.00
4.0 100.00
-2.00
3.5
14500 90.00
3.0 2.6 -4.00
2.5 -6.00 80.00
2.0 14000
Mar-19
Mar-18
Sep-19
Sep-18
Mar-20
Sep-20
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
Sep-23
Dec-18
Jun-19
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Jun-18
Jun-20
Jun-21
Jun-22
Jun-23
Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24
Steady BI Rate and Fed Funds Rate Real GDP and Real Estate (% yoy)
% Spread FFR BI Rate % Real Estate Real GDP
7.00 8.00
6.0
6.00 6.00
5.0
5.00 4.00 2.2
5.5
2.00
4.00
0.00
3.00
-2.00
2.00
-4.00
1.00
-6.00
0.00
1Q21
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24
Source: CBS, Bloomberg, processed 6
Page 7
Nov-22
Nov-22
Dec-22
Dec-22
Jan-23
Jan-23
Feb-23
Feb-23
Mar-23 Mar-23
Apr-23 Apr-23
Source: OJK, processed
Industry
Industry
May-23 May-23
Jun-23 Jun-23
Jul-23 Jul-23
Loan Growth (% yoy)
Aug-23 Aug-23
KBMI 3
KBMI 3
Loan to Deposit Ratio (%)
Sep-23 Sep-23
Oct-23 Oct-23
Nov-23 Nov-23
9.7
7.0
84.8
90.3
Nov-22 Nov-22
Banking Sector Highlight
Dec-22 Dec-22
Jan-23 Jan-23
Feb-23 Feb-23
Mar-23 Mar-23
Apr-23 Apr-23
Industry
Industry
May-23 May-23
Jun-23 Jun-23
Jul-23 Jul-23
Aug-23
KBMI 3
Aug-23
KBMI 3
Deposits Growth (% yoy)
Non Performing Loan (%)
Sep-23 Sep-23
Oct-23 Oct-23
Nov-23
2.4
Nov-23
1.9
2.5
3.0
Slower deposit growth and higher lending growth resulted on increasing deposit rates
Jan-22
8.4
8.7
10.3
Nov-22
0.7
1.7
5.2
3.7
Feb-22
Mar-22 Dec-22
Apr-22
May-22 Jan-23
Jun-22
Current Account
Feb-23
Jul-22
Aug-22
Deposit Rates (%)
Mar-23
Lending Rates (%)
Sep-22
Working Capital
Oct-22 Apr-23
Nov-22
Dec-22 May-23
Savings Account
Jan-23
Jun-23
Feb-23
Investment
Mar-23
Jul-23
Apr-23
May-23 Aug-23
Jun-23
1 Mo Time Deposits
Jul-23 Sep-23
Consumption
Aug-23
Sep-23 Oct-23
Oct-23
BI Rate
Nov-23
0.7
2.1
4.5
6.00
Nov-23
8.8
8.9
10.2
7
Page 8
BTN House Price Index as of December 2023
House Price Index (HPI) continued to grow by 8.25% YoY in 4Q23, across all types
HPI National HPI Type 36
7.71%
7.02%
8.25% 6.67% 6.49%
6.20%
6.83% 7.14% 5.55% 5.59%
6.56%
5.27%
5.64%
3.97% 4.26% 3.42%
5.24% 4.94%
4.29% 3.01%
3.79% 1.87% 1.44% 1.72% 1.67%
2.05% 1.34% 1.38% 1.43%
1.78% 1.09%
1.37% 1.55% 1.50%
1.13% 1.07% 1.16%
1.07%
1.34% 1.39%
Sep-22
Sep-20
Sep-21
Sep-23
Dec-19
Mar-20
Dec-20
Mar-21
Dec-21
Mar-22
Dec-22
Mar-23
Dec-23
Jun-20
Jun-21
Jun-22
Jun-23
Sep-20
Sep-21
Sep-22
Sep-23
Dec-19
Mar-20
Dec-20
Mar-21
Dec-21
Mar-22
Dec-22
Mar-23
Dec-23
Jun-20
Jun-21
Jun-22
Jun-23
Index QoQ YoY
BTN HPI QoQ YoY
HPI Type 45 HPI Type 70
9.24% 10.49%
8.20%
8.64%
6.80%
5.73%
6.08% 6.02% 5.88%
4.89% 4.86%
3.91% 4.28% 2.97% 2.41% 4.86%
4.00% 4.22% 2.66%
2.89%
3.38% 3.46% 3.93% 2.67%
1.70%
1.64% 2.04% 1.75%
1.44% 1.52% 0.52% 1.18% 1.61% 1.05% 1.46%
0.82% 0.84% 0.91%
0.34% 1.31%
Sep-20
Sep-21
Sep-22
Sep-23
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Mar-20
Mar-21
Mar-22
Mar-23
Jun-20
Jun-21
Jun-22
Jun-23
Sep-20
Sep-21
Sep-22
Sep-23
Mar-22
Dec-19
Mar-20
Dec-20
Mar-21
Dec-21
Dec-22
Mar-23
Dec-23
Jun-20
Jun-21
Jun-22
Jun-23
Index QoQ YoY
Index QoQ YoY
Source: BTN HPI 2023 8
Page 9
Latest Policies that impact to Bank
New Housing Regulations New Liquidity Incentives
❑ Adjustment on Subsidized House Price Caps ❑ Reserve Requirement Ratio Incentives
o The average 7% price increase in 2023 compared to 2021 price, while the o New Reserve Requirement Ratio (RRR) incentives of maximum 4%
average price increase in 2024 of around 3% from 2023 effective from 1 October should loosen industry’s tight liquidity (equivalent to
New Prices approx. IDR 80 Tn for every 1% RRR incentive) to support industry’s loan
2021 growth going forward.
2023 2024
Regions Prices % chg to % chg to
Prices Prices
(IDR Mn) 2021 2023
(IDR Mn) (IDR Mn) ❑ Macro prudential Liquidity Buffer
Java (excl. Jabodetabek) and
o Through the latest Bank Indonesia (BI) monetary meeting in October 2023,
Sumatera (except Riau, 150.50 162.00 7.64% 166.00 2.47%
BI will impose liquidity easing by reducing the Macroprudential Liquidity
Bangka Belitung, Mentawai) Buffer ratio of 100 bps from 6% to 5% for Commercial Banks, with repo
Kalimantan 164.50 177.00 7.60% 182.00 2.82% flexibility of 5% effective from 1 December 2023.
Sulawesi, Bangka Belitung,
156.50 168.00 7.35% 173.00 2.98% o Further liquidity management flexibility for BTN is expected through this
Mentawai, Riau policy to support strong loan disbursement.
Jabodetabek, Bali, Nusa
168.00 181.00 7.74% 185.00 2.21%
Tenggara & Maluku
Papua & Papua Barat 219.00 234.00 6.85% 240.00 2.56% Sharia Business Unit Spin Off
❑ Government-Borne VAT Policy for Property Sector
❑ New Policy of Sharia Business Unit Spin Off on POJK 12/2023
o The Ministry of Finance roll out incentives to the property sector especially
for low-middle housing segment with the budget totaling IDR 3.2 Tn to Through POJK 12/2023 on Sharia Business Unit Spin Off, OJK regulated that
stimulate housing demands. the Conventional Commercial Bank are obligated to divest its Sharia Business
o The government will cover 100% of Value Added Tax (VAT) for the Unit with a minimum equity injection of IDR 1 Trillion if :
purchase of houses price up to IDR 5 Bn with a tax base up to IDR 2 billion • Share of assets of more than 50% of parent , and/or;
from the house price until June 2024, and further 50% for the period of
• Total Sharia Business Unit assets of more than IDR 50 Trillion (based on
June – December 2024.
quarterly published reports).
o IDR 4 Mn administrative incentives for subsidized houses (landed and
high-rise building) with max price of IDR 350 Mn, will be provided for 14 • Spin-off should be done within two years since either the first two
months until December 2024. conditions meet.
9
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2023 Key Takeaways
Penetrating further on mortgage & high yield loans Growing BTN Mobile & e-deposito users
Loans grew 11.9% yoy as of Dec-23 to New BTN Mobile Apps has acquired
IDR333.7 Tn, higher than 2023's of 1.1 Mn users as of Dec-23
target, supported by +10.4% yoy mortgage
growth and +28.2% yoy in high yield segments
In FY23, total volume transaction grew
by 54% yoy to IDR 57.5 Tn with total
transaction of 415 Mn (+138.0% yoy).
Strategic initiatives to focus on high yield
loans (KUR,KAR dan KRING) lead to
higher loan yield >8% on FY23 to 8.12% E-deposito outstanding balance
touched IDR 2.8 Tn as of Dec-23
BI rate already elevated by 71.4% Non-interest income reached IDR
(3.5% ->6%) as of Dec-23, yet BBTN's 3.92 Tn or 12.2% of total income
interest expenses remain under (+75.7% yoy).
control (+36.4% yoy growth).
Total operating income of IDR32.2 Tn
(+14.5% yoy).
BBTN's strategy to focus on low-cost
funding (CASA+ retail deposits), translate to
higher low-cost funding to total deposits initiatives to boost Fee-Based income include expansion
to 61.7% as of Dec-23 (vs 57.3% as of Dec-22). of trade finance, bank guarantee also more features
on retail-based treasury transaction
Focusing on CASA and retail Deposits Boosting further on the non-interest income
10
10
Page 11
BTN’s 2023 Journey
Optimizing Non-Subsidized Mortgage Penetrating High Yield Loans from
Focusing on low-cost deposits and
with business development within captive customers through KUR,
higher CASA.
emerging affluent segment. KRING and KAR.
Outstanding (IDR Tn) KUR Strategy Total Deposits Outs (IDR Tn)
3 Sales Center Locations 32.8% YoY (IDR Tn) 28.2% Total Deposits
14.5 Total
• Implementation of Credit 321.9 349.9 8.7%
(Kelapa Gading, BSD, Surabaya) Scoring Model, Decision
19.07
11.3 2.0 195.9% Engine, and KUR Mobile
Monthly Disb. Of Ticket Size 14.4 Institutional TD
0.7 KUR App (B-Maps).
137.4 133.9 -2.6%
• KUR Outlets expansion to
>IDR 750Mn 30 outlets by Nov-23 (vs 10
28.0 Retail TD
7.7 outlets in Jun-23. 28.3
(IDR Bn) 132.9% YoY 6.8 13.8% -1.0%
KAR KRING & KAR Strategy 156.2 188.0
102 239 • Offering loan top-up facilities
CASA
20.4%
12M22
9M22 12M23
9M23 24.3%
4.7 through tele-sales in 10 pilot Dec-22 Dec-23
3.8 KRING
project branches.
Growth yoy
Non-Subsidized
Growth • Transforming Outlet’s role Low-cost
2022 2023 Mortgage Disb. with dedicated personnel.
57.3% 61.7% Funding Portion
Dec-22
9M22 Dec-23
9M23 yoy
Expanding digital and transaction Developing new sources of non-interest Settling bad loans and Business Process
based business banking income Improvement from various activities
±1 Mn 90+
Non-Interest Income (IDR Bn) 12M22 12M23 YoY
The divestment on distressed assets with
Non Recurring Income 857 2,422 182.8%
1 IDR 861 Bn amount to lower NPLs
of New Users
Treasury Transaction 154 669 333.7%
Acquisition of features has been
BTN Mobile introduced in 2023 Recovery Asset 371 882 137.7%
The first SOE Bank to undertake a bulk asset
Others 331 870 163.0% 2 sales with asset swap scheme
Newly Launched Feature Recurring Income 1,377 1,500 9.0%
Monthly Transaction Loan-related 363 458 26.4%
Feature The scheme involved the sale of NPL assets
Funding, service and digital 935 949 1.5% 3 to SPV
Lifestyle BTN Kita Sharia-related 79 93 18.1%
Feature
Total 2,233 3,922 75.6%
11
11
Page 12
BTN’s Transformation Journey on 2023 (1/4)
Optimizing Non-Subsidized Mortgage with business Non-Subsidized Mortgage Disbursement by Ticket Size
development within emerging affluent segment. (IDR Bn)
17,064 18,409 24,332 25,632
5.6% 9.9% 10.2% > IDR 750 Mn
Building new mortgage 17.7%
business model for
emerging affluent 46.0%
49.0% 56.4%
segment through
61.2% IDR 350 - 750 Mn
48.4% 41.1% 33.4% up to IDR 350 Mn
21.1%
(Kelapa Gading, BSD, Surabaya)
2020 2021 2022 2023
Non-Subsidized Mortgage Average Disbursement Ticket Size in 2023
(vs 2022) Non-Subsidized Mortgage Disbursement >IDR 750 Mn
(IDR Bn) (IDR Bn)
up to IDR 350 Mn IDR 259 Mn (vs IDR 248 Mn) 132.9% YoY
2,862
56.4% QoQ
1,206
IDR 350 - 750 Mn IDR 486 Mn (vs IDR 467 Mn)
947
1,229
505
771
380
1,074 Mn
314
> IDR 750 Mn (vs IDR 1,003 Mn)
IDR
2020 2021 2022 2023 1Q23 2Q23 3Q23 4Q23
12
12
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BTN’s Transformation Journey on 2023 (2/4)
Penetrating High Yield Loans from captive customers
through KUR, KRING and KAR. Outstanding (IDR Bn) Acceleration of KAR & KRING
Acquisitions
KRING1) 24.3% YoY KAR 2) 13.8% YoY KUR3) 195.9% YoY ❑ Offering loan top-up facilities through
tele-sales for selected customers with
7,663 good credit history in 10 pilot project
4,736 branches.
2,017
3,809
3,154 6,931 ❑ Transforming sub-branch office’s role
2,138 6,711 6,734 with dedicated personnel.
682
333
160
2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
Acceleration of KUR Business Process
v v
Disbursement (IDR Bn) KUR Outlets KUR Outlets
in 2Q23 in FY23
❑ Expand
KRING KAR KUR 10 30
669 689
791 585
539 541 Implementation of Credit
600 451 464
503 ❑ Digitize Scoring Model, Decision
437
Engine, and KUR Mobile
217 App (B-Maps).
QRIS and EDC Bundling KUR
❑ Integrate offering program & KUR
1Q23 2Q23 3Q23 4Q23 1Q23 2Q23 3Q23 4Q23 1Q23 2Q23 3Q23 4Q23
disbursement to E-
Commerce and Point of Sale
partners.
1) Kredit Ringan or Soft Loan 2) Kredit Agunan Rumah or Home Equity Loan 3) Kredit Usaha Rakyat 13
Page 14
BTN’s Transformation Journey on 2023 (3/4)
Focusing on low-cost deposits and Expanding digital and transaction
higher CASA. based business banking
Incremental Total Transaction Fee-Based from E-Channel
just in 1 year (IDR Bn)
15.2% YoY
IDR 57.5 Tn 155.5
134.9
54.2% YoY 122.8
89.2
Rate up to 2020 2021 2022 2023
e-Deposito Balance
*)
Rupiah and Valas
5.00% p.a IDR 2.8 Tn IDR 37.3 Tn 50% 9.2 K+
Soft YoY
Property
Launching Developers
on Dec-22
35%
YoY
15.6 K+
Housing
Projects
2022 2023
9%
YoY
948 K+
Property
Listing
Feb
Sep
Jan
Jun
Mar
Jul
Oct
May
Dec
Aug
Apr
Nov
BTN Properti
*) as of Dec-23 for e-Deposito Rupiah
14
Page 15
BTN’s Transformation Journey on 2023 (4/4)
Consistent Growth on Recurring Fee Income
Developing new sources of non-interest income
(IDR Bn)
❑ Initiatives to boost Fee-Based
9.0% YoY 1,500 income include expansion of
Wholesale Transaction Banking Business trade finance, bank guarantee,
1,377 and more features on retail-
Education Healthcare Property Related based treasury transaction
5 Focus
(bond & forex retail).
Ecosystem 1,227
Trade Industrial Estate
❑ Improve penetration through
1,075 Digital Banking transaction
❑ New business development from
priority customers through
Partnership with 2 Several public Collaboration with
bancassurance, mutual fund
prominent SOE universities transactions prominent public
2020 2021 2022 2023 and bond acquisition.
cement using BTN CMS hospital in Makassar
Wholesale Transaction Banking Performance Settling bad loans and Business Process Improvement from
(From Trade Finance, Bank Guarantee & CMS) various activities
Fee-Based Income Transaction Value Transaction Volume
(IDR Bn) (IDR Tn) (thousand) BTN closed the bulk asset sales divestment, with total amount
217.6% YoY 86.1% YoY 22.9% YoY of Rp861bn (7.9% of NPL as of Dec-23 pre-write offs). The
transaction completed at the end of 2023.
62.2 164.2 14.6
11.9 This asset sales help BTN to lower the NPL by around 26 bps
9.5
88.2 7.0 from our Dec-23 NPL number at 3.0%
25.7 68.8
19.6
14.8 35.6
BTN expects another round of bulk asset sales with potential
amount of circa IDR 1 Tn in 1H24.
2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
15
Page 16
2023 BTN Guidance
2023 Guidance 2023 Actual 2024 Guidance
Loan Growth 10 - 11% 11.9% 10 – 11%
Deposits Growth 5 - 7% 8.7% 8 – 9%
Net Profit Growth 8 - 10% 15.0% 10 - 11%
Cost of Credit 1.2-1.4% 1.2% 1.1-1.2%
NPL Gross <3.5% 3.0% <3%
16
Page 17
Initiatives in 2024
Page 18
Strategy Initiatives 2024
Bank BTN has formulated 7 strategic initiatives for 2024 with the theme "Become a Game Changer in the Disruptive
Technology Era".
04
Creating New
revenue engines
through partnerships Enhancing
and full banking collection &
Expanding solution recovery
Towards High capabilities through
Yield Loan savings program and
7
boosting recovery
03 05
Accelerating new
Strengthening
digital banking
BTN’s Value
capabilities by
Proposition and
scaling up transaction
rebranding
banking initiatives
02 06
01 Strategic Initiatives 07
Improving CASA
and transforming
of Bank BTN Becoming the
In 2024
BTN into a ESG Champion
transactional bank
18
18
Page 19
Strategy Initiatives : Improving CASA and Transforming BTN into a
transactional bank
Enhancing Wholesale Transaction Banking Improving Digital Capabilities
1. Developing Housing ecosystem with a 1. Acquiring and boosting digital transaction
focus on Property Related, Healthcare, through BTN Mobile
Retail and Education segments. 2. Optimizing Low-cost funding through
2. Revamping BTN Solusi to acquire CASA
Current Account 3. Tapping more SME customers to utilize
3. Optimizing Cash Management System BTN Merchant.
(CMS)
Increasing Products Holding from Existing Customers Acquiring CASA Customers from New Segment
1. Establishing Sales Acquisition Team
1. Increasing user activation rate from
KRING existing mortgage customers.
Unit (Direct Sales, Digital Sales and
Transaction Sales)
2. Promoting new products to priority
2. Developing New Priority Segment;
customers.
BTN Preferred (IDR 100 – 500 Mn) and
KAR 3. Penetrating individual customers
Private (>IDR 10 Bn)
from existing developer partners.
3. Setting up new unit for Medium
Institutional Funding (<IDR 500 Bn)
19
19
Page 20
Strategy Initiatives : Expanding Towards High Yield Loan
3 New Sales Centers in 2024 HighYield
High YieldInitiatives
Initiativesfor
in 2024
2024
Existing Sales Center New Sales Center
Sales Center • KUR Outlets expansion • Partnership expansion
Medan K ± IDR 4 Tn to 300 outlets in 2024 with digital, e-commerce
U • Focus on Small KUR & P2P platforms
New
R within Housing • KUR Mobile App (B-
Disbursement
Ecosystem Maps) enhancement.
Sales Center
± IDR 3 Tn
Sales Center Sales Center • Tele-sales intensification to promote
Kelapa Gading
BSD Makassar top-up loan
K New Disbursement • Implementing ‘BTN Ready’ digital
A lending platform with KAR Top Up
Sales Center feature
R
Bandung Sales Center + 14 – 15% • upselling and cross selling activities
Surabaya for existing customers
yoy growth
• Focusing on offers and promotions
• 3 of 10 cities with the largest through tele-sales, payroll customers,
K
11 Tn
population in Indonesia and joint financing to help boost KRING
• 3 of 10 Provinces with the highest sales R disbursement.
I • Introducing 'BTN Paylater' to target
± IDR
potential in house prices >IDR750
million N new and existing customers New disbursement
• there are 23 thousand unit of ready G • Joint financing/ asset buying through
synergy with other institutions.
houses in those 3 cities, based on
• Optimizing Payroll with new institutions
Indonesia Property Watch
Total Potential
Annual Sales IDR 5.05 Tn High yield loan contribution to total loans will be
around 6-7% by the end of 2025
20
20
Page 21
Strategy Initiatives : Enhancing collection & recovery capabilities
Intensifying of asset ❑ Increasing the portion of fee- KPR Maju (Ex-NPL & Write-Off Mortgage Recycle Product)
sales through auctions based income through asset
sales KPR Maju Application
and KPR Maju ❑ Optimizing sales through KPR
Maju to individual investors and
big buyers (multifinance
BTN Retail
Bad Assets
companies or developers)
1 – 2% higher than subsidized mortgage rate
Mortgage facility for the purchase of landed houses or flats, especially
❑ Intensifying collection of ex-Subsidized Mortgage unit, where the buying and selling process will
Improving Business early bucket debtors use the Power of Attorney to Sell (SKM) with Minutes of Hand Over as
process for collection through desk call activities the basis.
& recovery and field collection
activities
❑ Intensifying second way Bulk Asset Sales – Phase 2
out strategies for bad
loans on Late Bucket Details
❑ Total asset sales circa IDR 1 Tn of NPLs from high-rise commercial
loans.
❑ Providing incentives in form of ❑ The NPLs already 100% provisioned with an outright sale scheme.
Redefining collection installment discount when
❑ Bulk Asset Sales Phase 2 initiatives expected to be done by the end
mindset from customers can maintain
of 1H24.
“collecting” to “saving” minimum balance on their deposits
❑ Providing lower interest rates for ❑ NPL Gross targeted to be below 3% in the end of 2024.
for loan payment
customers with high deposit
balances
❑ Penetrating further through BTN 21
21
Mobile
Page 22
Strategy Initiatives : Becoming ESG Champion
BTN’s ESG Roadmap Six Components of BTN’s Framework
9 Strategic Theme of BTN’s ESG
Accelerate Phase o Conducting Sustainable Business
(2026 – 2028) Sustainable Finance Operations
o Developing sustainable and inclusive
bank products and portfolio
Advance Phase management
Climate Change & Ecosystems
(2025 – 2026) o Integrating ESG component in
enterprise risk management
framework and program
People & Community o Developing ESG culture and
responsible leaders program
Action Phase o Building a control environment that
is integrated with ESG components
(2023 – 2025) ESG in the Value Chain
o Establishing ESG monitoring,
communication, and reporting
program
Stakeholder Inclusiveness o Establishing ESG data management
o Navigating trends in ESG rules and
BTN seeks to improve ESG practices that regulations
accelerate positive impacts on the Integrated GRC
environment, economy, and society o Building partnerships and
cooperation
through BTN’s ESG Roadmap.
22
Page 23
5-Years Financial Performances
Page 24
Financial Snapshots
Financial Highlight 2019 2020 2021 2022 2023 Growth (%)
Asset/ Liabilities
Total Assets (IDR Bn) 311,777 361,208 371,868 402,148 438,750 9.1 yoy
Total Loan & Financing (IDR Bn) 255,825 260,114 274,835 298,282 333,698 11.9 yoy
Total Deposits (IDR Bn) 225,401 279,135 295,976 321,937 349,933 8.7 yoy
Profitability
Net Profit (IDR Bn) 209 1,602 2,376 3,045 3,501 15.0 yoy
NIM 3.32% 3.1% 4.0% 4.4% 3.8% (65) bps
CIR 58.1% 53.9% 48.2% 46.7% 45.3% (140) bps
ROE (Tier-1) 1.0% 10.0% 13.6% 16.4% 13.9% (256) bps
ROA 0.1% 0.7% 0.8% 1.0% 1.1% 5 bps
Asset Quality
NPL (Gross) 4.8% 4.4% 3.7% 3.4% 3.0% (37) bps
Loan at Risk (LAR) 3.0% 34.1% 26.8% 23.2% 21.1% (214) bps
NPL Coverage 50.0% 115.0% 141.8% 155.7% 155.2% (49) bps
Cost of Credit (CoC) 1.4% 0.9% 1.4% 1.4% 1.2% (21) bps
Liquidity
LDR 113.5% 93.2% 92.9% 92.7% 95.4% 271 bps
CASA 43.4% 41.1% 44.3% 48.5% 53.7% 521 bps
Capital
Equity (IDR Bn) 23,836 19,988 21,407 25,909 30,479 17.6 yoy
CAR (Tier 1) 15.6% 13.6% 13.8% 16.1% 17.5% 136 bps
Total CAR 17.3% 19.3% 19.1% 20.2% 20.1% (10) bps
24
Page 25
Balance Sheet
% Assets as
Balance Sheet Summary (IDR Bn) Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Dec-23 QoQ YoY
of Dec-23
Total Earning Assets 284,338 335,630 331,979 360,379 379,426 389,827 2.7% 8.2% 88.8%
Term Deposit with BI 6,134 11,583 5,550 4,578 11,451 12,149 6.1% 165.4% 2.8%
Total Loan & Financing 255,825 260,114 274,835 298,282 318,300 333,698 4.8% 11.9% 76.1%
Securities 18,628 59,494 48,313 53,688 46,076 41,200 -10.6% -23.3% 9.4%
Other Earning Assets 3,751 4,439 3,281 3,831 3,599 2,780 -22.7% -27.4% 0.6%
Provision on Earning Asset (6,145) (13,066) (14,440) (15,679) (15,977) (15,641) -2.1% -0.3% -3.6%
Total Non Earning Assets 33,584 38,645 54,329 57,449 46,227 64,563 39.7% 12.4% 14.7%
Total Assets 311,777 361,208 371,868 402,148 409,675 438,750 7.1% 9.1% 100.0%
CASA 97,754 114,764 131,120 156,202 160,260 188,007 17.3% 20.4% 42.8%
Current Account 52,117 72,045 79,199 114,007 118,061 143,535 21.6% 25.9% 32.7%
Saving Account 45,638 42,719 51,922 42,195 42,199 44,472 5.5% 5.4% 10.1%
Time Deposits 127,647 164,371 164,856 165,736 163,648 161,927 -1.1% -2.3% 36.9%
Third Party Deposits 225,401 279,135 295,976 321,937 323,908 349,933 8.0% 8.7% 79.8%
Securities issued 19,784 15,810 12,372 8,652 6,436 6,835 6.2% -21.0% 1.6%
Deposits from Other Banks 4,522 35 74 179 1,504 1,300 -13.6% 625.7% 0.3%
Repurchase Agreements 947 0 0 0 2,382 0 -100.0% 0.0% 0.0%
Borrowings 28,465 34,002 30,822 33,979 35,627 42,875 20.4% 26.2% 9.8%
Non Interest Bearing Liabilities 8,823 12,238 11,218 11,491 10,763 7,327 -31.9% -36.2% 1.7%
Total Liabilities 287,941 341,221 350,462 376,239 380,621 408,271 7.3% 8.5% 93.05%
Total Equity 23,836 19,988 21,407 25,909 29,054 30,479 4.9% 17.6% 6.95%
Total Liabilites & Equity 311,777 361,208 371,868 402,148 409,675 438,750 7.1% 9.1% 100.00%
25
Page 26
Loan Mix
Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Dec-23
Loan Type (IDR Bn) QoQ YoY
Outs % Outs % Outs % Outs % Outs % Outs %
Housing Loan 229,522 89.7% 234,785 90.3% 244,823 89.1% 261,705 87.7% 277,422 87.2% 284,617 85.3% 2.6% 8.7%
Subsidized Mortgage 111,130 43.4% 120,720 46.4% 130,683 47.6% 145,860 48.9% 157,716 49.6% 161,746 48.5% 2.6% 10.9%
Non Subsidized Mortgage 80,649 31.5% 79,938 30.7% 83,251 30.3% 87,824 29.4% 92,896 29.2% 96,175 28.8% 3.5% 9.5%
Other Housing Loan 8,032 3.1% 7,256 2.8% 6,976 2.5% 6,970 2.3% 7,559 2.4% 7,871 2.4% 4.1% 12.9%
Construction Loan 29,711 11.6% 26,871 10.3% 23,914 8.7% 21,051 7.1% 19,251 6.0% 18,826 5.6% -2.2% -10.6%
Non Housing Loan 26,303 10.3% 25,329 9.7% 30,012 10.9% 36,576 12.3% 40,891 12.8% 49,081 14.7% 20.0% 34.2%
Consumer Loan 4,896 1.9% 5,119 2.0% 6,559 2.4% 7,010 2.4% 6,762 2.1% 7,264 2.2% 7.4% 3.6%
Commercial Loan 9,032 3.5% 8,270 3.2% 9,512 3.5% 11,563 3.9% 11,141 3.5% 12,901 3.9% 15.8% 11.6%
Corporate Loan 12,375 4.8% 11,940 4.6% 13,942 5.1% 18,004 6.0% 22,975 7.2% 28,916 8.7% 25.9% 60.6%
Total Loan & Financing 255,825 100.0% 260,114 100.0% 274,835 100.0% 298,282 100.0% 318,300 100.0% 333,698 100.0% 4.8% 11.9%
Mortgage 191,779 75.0% 200,658 77.1% 213,934 77.8% 233,684 78.3% 250,612 78.7% 257,921 77.3% 2.9% 10.4%
Gross Loan (IDR Tn) +11.9% yoy Composition by Business Segment Non Housing Loans
333.7 Housing Loans
298.3 10.3% 9.7% 10.9% 12.3% 14.7%
274.8
255.8 260.1
90.3%
89.7%
89.1%
87.7%
85.3%
CAGR 6.7%
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
26
Page 27
Loan Disbursement
Loan by Segment (IDR Bn) 12M19 12M20 12M21 4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY
Housing Loan 44,117 29,712 35,399 14,525 16,383 15,585 -4.9% 7.3% 47,559 56,893 19.6%
Subsidized Mortgage 19,272 17,064 18,409 7,406 7,673 6,775 -11.7% -8.5% 24,332 25,632 5.3%
Non Subsidized Mortgage 12,498 6,935 10,969 4,053 5,171 5,866 13.4% 44.7% 14,363 19,073 32.8%
Other Housing Loan 1,365 683 1,069 465 679 699 2.9% 50.3% 1,349 2,378 76.4%
Construction Loan 10,982 5,03 4,952 2,601 2,860 2,245 -21.5% -13.7% 7,516 9,810 30.5%
Non Housing Loan 20,587 15,177 24,206 12,202 9,397 12,153 29.3% -0.4% 40,036 36,794 -8.1%
Consumer Loan 4,184 4,251 7,182 3,464 1,092 1,283 17.5% -63.0% 8,530 3,853 -54.8%
Commercial Loan 10,762 3,884 9,036 6,280 4,597 3,322 -27.7% -47.1% 20,807 14,573 -30.0%
Corporate Loan 5,641 7,041 7,988 2,458 3,708 7,549 103.6% 207.1% 10,698 18,368 71.7%
Total Loan & Financing 64,704 44,888 59,605 26,727 25,780 27,739 7.6% 3.8% 87,595 93,687 7.0%
Mortgage 31,770 23,999 29,378 11,459 12,844 12,641 -1.6% 10.3% 38,695 44,705 15.5%
27
Page 28
Deposits Mix
Customer Deposits (IDR Tn) Cost of Deposits (% YTD)
By Segments Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 YoY
CASA 97.7 114.8 131.1 156.2 188.0 20.4% 7.8 7.8 7.7
Current Account 52.1 72.0 79.2 114.0 143.5 25.9% Within the same level of interest rate
7.0 6.8
back to 2019 (6% BI7DRR), BTN has
Savings Account 45.6 42.7 51.9 42.2 44.5 5.4% 6.5 managed CoF
6.2
Time Deposits 127.6 164.4 164.9 165.7 161.9 -2.3% 6.0 6.0
5.3
Total Deposits 225.4 279.1 296.0 321.9 349.9 8.7% 5.2 5.1 5.2
5.7 5.7 5.7
5.3 5.2 4.6
5.0 4.3
4.8 4.1 4.0
CASA and Cost of Fund (%)
3.5
CASA Non CASA CoF (ytd) 3.5 3.1
3.7 3.6 3.6 3.6 3.7
3.5 3.2 3.1
5.7% 3.3
3.1
2.9 2.9 2.9 2.9 2.8 2.8 2.7
4.8% 2.6
46.3% 2.3 2.4 2.4 2.4
56.6% 55.7% 51.5% 2.1 2.0 2.1 2.1 2.1 2.1
58.9%
1.9
3.7% 1.5
1.4 1.4 1.4
3.1%
2.6%
53.7% 1H19 FY19 1H20 FY20 1H21 FY21 1H22 FY22 1H23 FY23
43.4% 44.3% 48.5%
41.1%
CASA Time Deposits Total Deposits BI rate
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
28
Page 29
Capital
Capital Full-Year of
% Growth
(IDR Bn) 2019 2020 2021 2022 2023
Tier – 1 Capital 21,037 17,626 18,532 22,533 27,154 20.5 yoy
Tier – 2 Capital 2,313 7,369 7,175 5,635 4,076 -27.7 yoy
Total Capital 23,350 24,995 25,707 28,168 31,230 10.9 yoy
Total RWA 134,844 129,250 134,341 139,631 155,590 11.4 yoy
RWA – Credit Risk 113,079 105,435 110,020 114,318 136,692 19.6 yoy
RWA – Market Risk 802 1,612 2,407 1,373 942 -31.4 yoy
RWA – Operational Risk 20,963 22,203 21,914 23,939 17,956 -25.0 yoy
CAR Tier 1 (Tier 1/Total RWA) 15.6% 13.6% 13.8% 16.2% 17.5% 136 bps
CAR Tier 2 1.7% 5.7% 5.3% 4.0% 2.6% (142) bps
CAR BI ((Tier 1+2)/Total RWA) 17.3% 19.3% 19.1% 20.2% 20.1% (10) bps
Capital Conservation Buffer 2.5% 0.0% 0.0% 2.5% 2.5% - bps
Countercyclical Buffer 0.0% 0.0% 0.0% 0.0% 0.0% - bps
Capital Surcharge (D-SIB) 1.0% 1.0% 1.0% 1.0% 1.0% - bps
29
Page 30
Profit and Loss
PL Summary (IDR Bn) 4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY
Interest Income 6,911 7,311 7,438 1.7% 7.6% 25,888 28,271 9.2%
Interest Expense (3,309) (3,647) (3,957) 8.5% 19.6% (10,740) (14,648) 36.4%
Net Interest Income 3,602 3,665 3,481 -5.0% -3.34% 15,148 13,624 -10.1%
Other Operating Income 822 646 1,561 141.7% 90.0% 2,233 3,922 75.6%
Other Operating Expense (Exclude Provision) (1,988) (2,244) (2,710) 25.4% 36.0% (9,406) (9,311) -1.0%
Pre-Provision Operating Profit (PPOP) 2,436 2,067 2,332 12.1% -0.7% 7,975 8,234 3.5%
Provision (1,425) (998) (828) -17.0% -41.9% (4,041) (3,765) -6.8%
Profit From Operations 1,011 1,069 1,504 39.2% 63.3% 3,934 4,470 13.6%
Non-Operating Income (Expense) (24) (25) (39) 57.8% 65.6% (59) (90) 52.4%
Profit Before Tax 987 1,050 1,464 39.4% 49.9% 3,876 4,380 13.0%
Net Profit 770 838 1,188 41.8% 52.3% 3,045 3,501 15.0%
30
Page 31
Profit and Loss Composition (1/3)
Interest Income
% portion
Interest Income (IDR Bn) 4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY
of 12M23
Placement with Bank Indonesia 142 194 194 0.1% 37.3% 321 609 89.5% 2.1%
Placement with other bank (25) 2 4 186.3% -118.1% 10 16 49.0% 0.1%
Securities 548 481 657 36.5% 19.9% 2,253 2,244 -0.4% 7.9%
Loan 5,536 5,866 5,795 -1.2% 4.7% 20,956 22,378 6.8% 79.2%
Others 57 22 22 -1.0% 1,127.1% 61 90 47.5% 0.3%
Income from Syariah 654 746 766 2.6% 17.1% 2,286 2,934 28.3% 10.4%
Total 6,911 7,311 7,438 1.7% 7.6% 25,888 28,271 9.2% 100.0%
Interest Expense
% portion
Interest Expense (IDR Bn) 4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY of 12M23
Bank Indonesia - - - - - - - 0.0% 0.0%
Deposits from Other Banks 84 80 73 -9.1% -14.0% 135 241 79.2% 1.6%
Deposits from Non Banks 2,604 2,931 3,212 9.6% 23.6% 7,918 11,832 49.4% 80.8%
Securities Issued 171 125 119 -5.0% -30.2% 880 547 -37.9% 3.7%
Fund Borrowings 449 475 532 12.1% 18.5% 1,801 1,953 8.4% 13.4%
Others 2 36 21 -40.9% 1,174.9% 7 76 1002.5% 0.5%
Total 3,309 3,647 3,957 8.5% 19.6% 10,740 14,648 36.4% 100.0%
31
Page 32
Profit and Loss Composition (2/3)
Other Operating Income
Other Operating Income (IDR Bn) 4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY
Non-Recurring Income 409 267 1,131 323.0% 176.4% 857 2,422 182.8%
Gain from Treasury Transaction 139 55 77 38.2% -44.6% 154 669 333.7%
Recovery 187 185 513 177.5% 174.6% 371 882 137.7%
Others 84 27 541 1,905.1% 546.5% 331 870 163.0%
Recurring Income 413 378 430 13.6% 4.2% 1,377 1,500 9.0%
Loan Related Transaction 112 130 125 -3.4% 11.6% 363 458 26.4%
Deposits & Banking Service Related 275 224 277 23.9% 0.7% 935 949 1.5%
Sharia Related Transaction 25 25 28 10.2% 9.5% 79 93 18.1%
Total 822 646 1,561 141.7% 90.0% 2,233 3,922 75.6%
(IDR Bn) 2,114 2,515 2,488 2,233 3,922 22.2% Others
Recovery
22.5%
Non 38.4%
Recurring 44.21% 50.7% Treasury
57.3% 61.7%
Income 17.1%
2.4% Sharia Related
Recurring Deposits &
Income 24.2%
55.79% 61.6% Banking Service
42.7% 49.3%
38.3%
11.7% Loan Related
2019 2020 2021 2022 2023 12M23
3Q23 32
Page 33
Profit and Loss Composition (3/3)
Other Operating Expense (exclude Provisions)
Other Operating Expense (IDR Bn) % portion
4Q22 3Q23 4Q23 QoQ YoY 12M22 12M23 YoY
Excluding Provision of 12M23
Salaries & Employee Benefit 769 771 749 -2.8% -2.6% 3,311 3,220 -2.8% 34.6%
General Administration (262) 258 359 39.1% -236.8% 839 1,186 41.5% 12.7%
Others 236 210 458 118.1% 94.1% 939 834 -11.2% 9.0%
Rent, Service & Maintenance 220 245 238 -2.9% 8.3% 913 833 -8.8% 8.9%
Depreciation 205 188 195 3.6% -4.9% 629 717 13.9% 7.7%
Promotion 194 127 179 40.8% -7.6% 470 537 14.4% 5.8%
Collector Fees & Consultant 263 265 305 15.1% 16.0% 1,069 1,083 1.3% 11.6%
Insurance Premium 147 166 165 -0.5% 12.6% 621 680 9.4% 7.3%
Training 32 30 35 14.8% 10.4% 88 96 9.3% 1.0%
Research & Development 2 1 3 95.9% 57.1% 6 8 41.6% 0.1%
Other Taxes 2 7 1 -82.3% -14.3% 12 12 4.3% 0.1%
Loss (transaction spot, derivative, and forex) 344 (26) 16 -163.1% -95.2% 500 100 -80.1% 1.1%
Marked to Market (153) - 6 N/A -103.8% 10 6 -41.5% 0.1%
Total 1,988 2,244 2,710 20.8% 35.7% 9,406 9,311 -1.0% 100.0%
33
Page 34
Key Financial Ratios
ROA1 – Before Tax ROA2 – After Tax
1.0% 1.1% 0.9%
0.8%
0.8% 0.6%
0.7%
0.5%
0.1% 0.1%
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
1Calculated based on income before income tax (include tax benefit and extraordinary item)/ 2Calculated based on net profit/average total asset
average total asset based on Bank Indonesia regulation
ROE3 – Tier 1 Capital ROE4 – Balance Sheet
11.1% 11.8% 11.5%
16.4%
13.6% 13.9% 8.0%
10.0%
1.0% 0.9%
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
3Calculated based on net profit/average Tier 1 Capital based on Bank Indonesia regulation 4Calculated based on net profit/total stakeholder’s equity
34
Page 35
Asset Quality
Page 36
Loan Quality
Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Dec-23
Collectibility
IDR Bn % IDR Bn % IDR Bn % IDR Bn % IDR Bn % IDR Bn %
Current 217,344 85.0% 230,456 88.6% 252,244 91.8% 268,077 89.9% 277,155 87.1% 297,251 89.1%
Special Mention 26,251 10.3% 18,303 7.0% 12,412 4.5% 20,134 6.8% 29,906 9.3% 26,399 7.9%
Performing Loan (PL) 243,595 95.3% 248,759 95.6% 264,656 96.3% 288,211 96.6% 307,074 96.5% 323,649 97.0%
Substandard 3,088 1.2% 738 0.3% 222 0.1% 580 0.2% 663 0.2% 571 0.2%
Doubtful 1,396 0.5% 582 0.2% 484 0.2% 888 0.3% 1,230 0.4% 678 0.2%
Loss 7,747 3.0% 10,036 3.9% 9,473 3.4% 8,602 2.9% 9,346 2.9% 8,800 2.6%
Non Performing Loan (NPL) 12,230 4.8% 11,355 4.4% 10,185 3.7% 10,070 3.4% 11,238 3.5% 10,049 3.0%
Total Loan & Financing 255,825 100.0% 260,114 100.0% 274,841 100.0% 298,282 100.00% 318,300 100.0% 333,049 100.0%
NPL Gross 4.8% 4.4% 3.7% 3.4% 3.5% 3.0%
NPL Nett 3.0% 2.1% 1.2% 1.3% 1.6% 1.3%
NPL Breakdown by Segment SML Breakdown by Segment
By Segment (%) Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Dec-23
2019 2020 2021 2022 2023 Avg. 5 years SML
Housing Loan 4.4% 4.1% 3.5% 3.4% 3.7% 3.2%
13.7%
Subsidized Mortgage 1.0% 1.0% 0.8% 0.9% 1.6% 1.5%
12.9%
Non-Subsidized Mortgage 3.9% 3.6% 2.6% 1.9% 2.3% 2.0% 10.2%
11.2%
11.1%
9.5% 8.5%
10.7%
10.3%
Other Housing Loan 4.7% 4.4% 3.4% 2.9% 3.6% 3.7%
9.5%
7.4%
9.3%
8.8%
8.8%
8.6%
Construction Loan 18.7% 19.6% 21.3% 26.2% 26.9% 23.8%
8.2%
7.9%
7.1%
7.0%
Non-Housing Loan 7.8% 6.7% 5.2% 3.4% 2.6% 1.9%
6.8%
6.6%
6.1%
6.0%
Consumer Loan 2.8% 2.1% 1.2% 1.1% 1.6% 1.6%
4.5%
Commercial Loan 21.2% 19.2% 15.3% 9.4% 7.3% 6.2%
Corporate Loan 0.0% 0.0% 0.2% 0.6% 0.6% 0.1%
Total Loan & Financing 4.8% 4.4% 3.7% 3.4% 3.5% 3.0%
2.2%
1Q 2Q 3Q 4Q
Mortgage 2.0% 1.5% 1.3% 1.9% 1.7%
Note: Figures on graph and table include Sharia Financing 36
Page 37
Loan Quality ,Coverage and Cost of Credit
NPL & NPL Coverage LAR & LAR Coverage
155.7% 155.2% 34.1%
141.8%
115.0% 24.2% 23.2% 21.1%
3.7% 3.4% 3.0%
21.7% 22.6% 22.1%
4.4% 15.7 15.6 14.7%
14.4
13.1 88,672 (IDR Bn)
11.4
10.2 10.1 10.0 228
386 5,879
66,540 70,406
69,315
18,571 294 3,642 4,992
236 3,629 259 3,495 298 3,751
3,291
Dec-20 Dec-21 Dec-22 Dec-23 9,930
14,472 13,384
1,937
Provision Amount (IDR Tn) NPL Amount (IDR Tn) 29,323 2,789 2,194
NPL Coverage (%) NPL (%) 22,412
23,576 22,011
Cost of Credit Provision Charge (IDR Tn) Cost of Credit
1.4% 30,995 27,086
1.3% 21,544 24,328
1.2%
0.9%
4.0 3.8
3.6
Dec-20 Dec-21 Dec-22 Dec-23
2.2
Subsidized Mortgages Non-Subsidized Mortgages Other Housing
Construction Loan Consumer Loan Commercial Loan
Corporate Loan Total Loan
% LAR % LAR Coverage
2020 2021 2022 2023
37
Page 38
Restructured Loans Breakdown by Segment
Covid-19 Restructured Loan by Segment Total Restructured Loan by Segment
21.8% 27.8%
14.5% 23.5% 19.4%
11.4% 8.5% 16.8%
56,677 72,396 (IDR Bn)
113 (IDR Bn) 205
3,725 4,881 64,463
107
83 294
3,094 57,829
8,968 15,986
104 56,194
3,642
2,375 39,766 14,334 4,829
91 2,990
179 2,906 3,276
78 1,800 34,060 85
2,537 12,255
6,483 8,795
3,527
20,852 1,487 28,243 1,957 1,666
71 1,173 25,097
4,208 4,579
45 23,167
1,148 261
15,013 1,422 19,084 18,976
641
11,964
10,894
20,562 23,215
14,726 20,932 18,568
17,808
11,969 10,401
Dec-20 Dec-21 Dec-22 Dec-23 Dec-20 Dec-21 Dec-22 Dec-23
Subsidized Mortgages Non-Subsidized Mortgages Other Housing Subsidized Mortgages Non-Subsidized Mortgages Other Housing
Construction Loan Consumer Loan Commercial Loan Construction Loan Consumer Loan Commercial Loan
Corporate Loan Total Loan % Covid restru to Corporate Loan Total Loan % total restru to
total Loan total Loan
38
Page 39
Restructured Loans Breakdown by Collectability
Covid-19 Restructured Loan by Collectability (%) Total Restructured Loan by Collectability (%)
0.4%4.9% 2.1% 3.8%
8.7% 7.1% 8.8% 9.7% 12.1% 11.6%
15.8% 15.4% 9.6% 11.3%
20.3% 27.9%
94.8% 89.2%
80.4% 77.5% 81.5% 79.0%
67.6% 60.4%
Dec-20 Dec-21 Dec-22 Dec-23 Dec-20 Dec-21 Dec-22 Dec-23
Covid-19 Restructured Loan by Collectability (IDR Bn) Total Restructured Loan by Collectability (IDR Bn)
72,396
56,677 6,403 64,463
210 2,761 6,979 57,829 56,194
6,266
7,268 7,002 6,546
39,766
835 34,060 11,717
3,452 15,689
1,300 28,243
5,377 2,007
53,706 59,014
4,336 50,928
35,479 39,110 33,959
27,384
21,899
Dec-20 Dec-21 Dec-22 Dec-23 Dec-20 Dec-21 Dec-22 Dec-23
Coll 1 Coll 2 NPL 39
Page 40
Business Process Improvement is proven successful as SML and NPL
from recent disbursements are almost 0%
Old Booking Transition New Booking after transformation and BPI
Consumer Loan
8.0% 8.0% 7.5% 7.3%
6.6% 6.1%
Vintage Consumer
▪ SML from 2022 & 2023 booking
1.9% 1.9% 1.3% 1.2% 1.4%
recorded at 6.1% and 0.1%. 0.6% 0.1% 0.0%
▪ NPL from 2022 & 2023 booking was
0.6% and 0.0%. 2017 2018 2019 2020 2021 2022 2023
Commercial Loan
42.9%
Vintage Commercial 35.3%
28.9% 28.6%
▪ SML from 2022 & 2023 booking 19.1% 15.7%
11.0% 8.9%
recorded at 0.0% and 0.2%. 2.2% 3.7% 0.0% 1.0% 0.2% 0.0%
▪ NPL from 2021 & 2022 booking was
0.0%. 2017 2018 2019 2020 2021 2022 2023 SML
SME NPL
71.0% 69.6%
54.3%
Vintage SME
▪ SML from 2022 & 2023 booking
19.1%
recorded at 1.4% and 0.0%. 7.1% 3.2% 2.3%
9.0%
2.0% 4.7% 1.4% 1.8% 0.0% 0.1%
▪ NPL from 2021 & 2022 booking was
1.8% and 0.1%. 2017 2018 2019 2020 2021 2022 2023
Corporate Loan 8.6%
Vintage Corporate 5.5% 5.1%
▪ SML from 2022 & 2023 booking 1.8% 2.5%
recorded at 2.5% and 0.0%. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
▪ NPL from 2022 & 2023 booking was
0.0% and 0.0%. 2017 2018 2019 2020 2021 2022 2023
40
Page 41
Sustainable Finance
Page 42
Bank BTN ESG Framework : The Future of Finance
BTN aims to establish a sustainable business processes that is in line with BTN business strategies by integrating environmental,
good governance, and social values in a comprehensive ESG framework.
The Future of Finance Six Components of BTN’s Framework
Managing products and services that
ESG in Value Chain
Sustainable support the transition to a low-carbon
Climate Change & Ecosystem Finance economy and maintain social balance
by providing equal access to capital.
Climate Change Managing climate change risks and
& Ecosystems the impact on ecosystem capacity.
People & Managing impacts on people,
Community communities and society at large.
Sustainable Finance People & Community
Establishing the sustainable business
Stakeholder Inclusiveness ESG in the
with the concept of ESG along the
Value Chain
business value chain
Integrated GRC
Stakeholder Communicating the sustainable
Inclusiveness business plans with all stakeholders
Governance Risk Compliance
Integrated Managing integrated manner to
GRC achieve goals with GRC.
Integrated GRC
42
Page 43
BTN’s ESG in a Nutshell
E Sustainability
nvironmental
ESG Focus in 2024
Solar panels have Procured Listing 12 categories of
Be the ESG champion in the
29
Environmental been installed at sustainable business banking industry
Initiatives activities in the
Undertaken
by BTN
3 Electric Vehicles (EV)
Portfolio
Guidelines
Establishing ESG
Committee and Issue ESG Bond
BTN’s own office as operational vehicles ESG Department
Social Welfare More ESG in 2023
Lending to MSMEs is
50
targeted to reach
20
employees
100% collaborated with Green
Social Goals
of BTN’s ESG
Initiatives
involved in Employee
% 20 % Building Council Indonesia (GBCI)
provide education and certification in
Volunteering Day Out of total productive Target Portion of Develop New BTN’s green building)
activities. loans portfolio Women in the Board ESG Website
G overnance
1
Sustainability
(as of Dec-23)
Banks Industry st ESG Disclosure
Transparency Awards 2023
Winner
22.9
313 of 1,014
Gold Rank
Medium
Risk Global Universe
In Accordance Category Annual Report Award
Leadership AA
Asia Sustainability Reporting (ARA) 2022 predicate
Negl. Low Med. High Severe 6,244 of 15,765 Rating in 2023 SOE Financial Company Category
0-10 10-20 20-30 30-40 40+
43
43
Page 44
Environmental Sustainability
BTN always supports and committed to environmental preservation. As a concrete action to support environmental protection, BTN
has implemented several actions to support net-zero emission.
Greenhouse Gas (GHG) Intensity Greenhouse Gas (GHG) Emission Reduction Efforts
Energy use per Employee Energy use per Employee Operational Emission (ton CO2 eq) Purchase Goods (ton CO2 eq) Business Travel (ton CO2 eq)
(ton CO2 eq/employee) (ton CO2 eq/employee) Scope 1 (Fuel)
47,168
-20.9% yoy -16.2% yoy Scope 2 (Electricity)
15.3 10,336
26,432 688
6.2 22,622
5.1 6,447
16,246
1.9 4.4 4,614
1.5 16,985 276 285
20,736 8,964
5,637 7,282
2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023
Lesser Carbon Footprint through Digital Application Waste Management
3
▪ Providing Temporary Shelters (TPS) with capacity of 5m
Applied Digital Banking to reduce
▪ Implementing the use of four infiltration wells with capacity of
paper usage : 3
48m each.
▪ Letter distribution and disposition ▪ Conducting a plastic waste-free campaign.
through iFlow ▪ Implementing 20 bio pore infiltration holes at Menara BTN.
▪ Implementation of Smart Branch
to maximize digitization by
3
Green Transportation Green Premises
29
reducing the use of paper forms
▪ Mortgage applications through
BTN Properti using E-Form
▪ Management fees, parking fees,
and other housing maintenance
fees management through BTN
Smart Residence Installed
Electric Vehicles (EV)
as operational vehicles
Solar panels
at Bank BTN office
(Car + Motorcycle)
Environmental Sustainability 44
44
Page 45
ESG-based Financing and Investment Products
As a bank with core business in the housing sector, Bank BTN has strategically integrated ESG considerations into investment decisions
and transactions.
Environmental Sustainability 45
45
Page 46
Contributing more into people’s welfare through subsidized mortgage
Segmented by Ages
Contribute in reducing housing Provide houses with affordable
backlogs in Indonesia through electric prices with adjusted 21 - 35 years 36 - 50 years >51 years
housing financing program targeted rates for middle-low income 0.6% 0.4% 0.4% 0.4% 0.6%
to low-middle income segments segments.
24.1% 20.9% 20.4% 20.6% 21.5% ▪ ~75% of BTN
Subsidized
mortgage
78.7% 79.2% 79.0% 77.9% customers are
Subsidized Mortgage 75.2%
Millennials
2019 2020 2021 2022 2023
Segmented by Wages
By Wages ▪ The maximum
up to IDR 4mn IDR 4 - 6 Mn IDR 6 - 8 Mn salary for eligible
subsidized
0.0%
1.1% 2.0% 3.7% 7.1% mortgage
Ensure availability and sustainable 25.2% customers were
Make inclusive, safe, resilient and management of clean water and 44.0% 48.9%
54.4% IDR 6 Mn for
sustainable community in each sanitation in subsidized housing. 100.0% single income and
subsidized housing complex. 73.6% IDR 8 Mn for joint
54.0% 47.5% income.
38.5%
▪ Prior to 2019
162 maximum salary
146 Subsidized 2019 2020 2021 2022 2023
were IDR 4 Mn
131 Mortgage Loan
121 By Gender
111 Outstanding Segmented by Gender
(IDR Tn) Male Female
▪ All genders
32.2% 31.0% 32.4% 33.3% 35.0% have the same
% of Subsidized opportunity to
Mortgage of own a
43.4% 46.4% 47.6% 48.9% 48.5% total BTN Loan subsidized
67.8% 69.0% 67.6% 66.7% 65.0%
Portfolio house
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Social Welfare 46
46
Page 47
Supporting the Development of Housing Business Ecosystem through KUR
Keeping within BTN’s expertise, KUR Programs Will Remain Focused on Maximizing the Housing Ecosystem and Business Related to
Housing
Inauguration of the
KUR Disbursement KUR Disbursement Growth per MSME Process Center
(IDR Bn) Province in 2023 in Surabaya, East Java
in order to
Top 5 Contributor KUR : West Java, East Java, Jakarta, Central accelerate and
+201.4% yoy Java and Banten simplify the KUR
disbursement process
1,808
600
291
Dec-21 Dec-22 Dec-23
Jakarta
(172.2%)
KUR Portfolio by Segment East Java
Banten (245.7%)
Focusing on secured loans with manageable NPLs (175.2%)
West Java
(228.2%)
Central Java
(191.9%)
28.3% Wholesale and KUR Growth Indicator
Retail Trade
44.9%
Construction
Within 2023, UMKM Center has been carried out at 10
26.8% Others Branch Offices in East Java, DKI Jakarta and West Java
3% 450%
Social Welfare 47
Page 48
Housing Finance Center (HFC) to support housing industry in Indonesia
Through BTN Housing Finance Centre (HFC), BTN assists prospective new developers through a learning & advisory program and providing basic
education to prospective developers
BTN Santri Developer in Collaboration with NU Circle
Housing Finance Center (HFC) ❑ To support the growth of
1,396
To become a leading center for research, education and Students have housing industry in Indonesia,
consultancy on housing finance participated in the BTN is committed to
Santri Developers providing education to
program. prospective developers from
Islamic boarding schools in
Learning collaboration with NU
Circle.
❑ By the end of 2023, Bank
Implementing the HFC’s flagship work program in seminars, workshops,
BTN had organized 3
and short courses both online and offline in collaboration with well-known
batches of Santri
universities in Indonesia, Islamic boarding schools and other stakeholders.
Developers in Jombang,
Cirebon, and Salatiga and 1
online event.
Advisory
Literacy Property Program in Collaboration with Universities
Conducting collaboration, coaching, mentoring and carrying out advisory
❑ Implementation of Mini MBA in
functions with academics, practitioners, government and community to
Property with a total of 798
training participants of HFC Program in property sector
graduates in 19 batches
❑ Collaboration with ILUNI UI
Research (Alumni Association of University of
Indonesia) on Ruang Temu
Property Program
Research implementation within the property sphere through various
❑ Collaboration with KATSGAMA
studies on the housing market and developing the House Price Index (HPI).
UGM (Civil Engineering Association
of Gajah Mada University) on School
of Property Program
Social Welfare 48
48
Page 49
Human Capital Composition and Policy
Gender Diversity Management Composition
(as of Dec 23)
12,045 employees
Commissioner Composition The Gratification Control Unit is
Independent Commissioner
a unit in the Compliance and
Governance Division that is
50% 50% 43% 44% 50% 10% tasked with receiving
gratification reports from
reporters and then reporting
of the BOD
composition to the Komisi Pemberantasan
57% 56% are women Korupsi (KPK).
47.8% 52.2%
50% 50% 50%
Female Male
2019 2020 2021 2022 2023
Employee Composition Respectful Workplace Policy Whistle Blowing System (WBS)
Manager &
❑ Recognize and respect differences in a https://btnsiips.tioffs.info
by Staff & Officer diverse work environment with a wide range
Senior Manager Email : btnsiips@tipoffs.info
Level 86.7% 11.9% of ethnic backgrounds, races, nationalities,
skin colors, ages, religions, genders,
*) Consists of AVP, VP, SVP and EVP Top Management*) disabilities, viewpoints, or other Msg./WA + 62 813 8870 1117
1.3% characteristics and perspectives, mainly to Telp. + 62 21-5092882/3
15%
promote a productive environment.
of the Top Management
The objective of the Company's WBS is to
composition are women ❑ Ensure that everyone is treated strengthen internal control mechanisms in
equally and have the same opportunity
support of business growth, through :
accessing the facilities and infrastructure.
≤ 30 31 - 50 ≥51 ❑ Conduct early detection and prevention of
by ❑ Create a work environment of mutual
Age 43.8% 48.3% 7.9% irregularities or violations;
respect, non-discrimination, and harassment
❑ Gradually creating an open, sincere, honest,
in any form.
and responsible work climate.
Social Welfare 49
49
Page 50
Governance Sustainability Highlight
Better Sustainalytics ESG Rating than peers CSR HUB Refinitiv
BTN Rating vs Peers ESG Rating
History Low
Top
89
Combined ESG Score B+
ESG Ranking (%) Bank BTN’s ESG
30.3 Compared Within performance ranked at
28.4 26.9 28.2
22.9 21.4 22.7 23.8 31,122 Companies
Environmental Social Pillar Governance 176 out of 1,097 Banking
18.8 Pillar Score Score Pillar Score
Services Company as
assessed by Refinitiv
C A- B
Jun-22 Aug-23 Des-23 Latest Sustainalytics Rating
Winner of Annual Report Awards Included in some ESG Indices Other Ratings
with overall score of
IDX LQ45
Low Carbon Leaders Top 3 Indonesia PLCs
ASEAN Asset Class Threshold
111.82
1
“Most Trusted Company”
st 90.5
SRI Kehati Index
Winner 1. ESG Sector Leaders
Corporate
Governance
Perception
89.8
90.0
Annual Report Award (ARA) 2022 2. ESG Quality 45 Index (CGPI)
SOE Financial Company Category
2021 2022 2023
Governance Sustainability 50
50
Page 51
Sharia Business
Page 52
Strategy Initiatives : Spin Off Sharia Business Unit
Total Sharia Asset Sharia Business Unit Spin Off Regulation
(IDR Tn)
❑ New Policy of Sharia Business Unit Spin Off on POJK
54 12/2023
45
38 OJK regulated that the Conventional Commercial Bank are
33 obligated to divest its Sharia Business Unit with a minimum
28 equity injection of IDR 1 Trillion if :
❑ Share of assets of more than 50% of parent , and/or;
❑ Total Sharia Business Unit assets of more than IDR 50
Trillion (based on quarterly published reports).
2019 2020 2021 2022 2023
❑ The spin-off on Sharia Business Unit must be done
within 2 (two) years after either total assets reach IDR
❑ Total assets of BTN's sharia unit as of Nov-23 already
50 Tn and/or 50% of parent's total assets.
reached IDR 50.8 Tn, hence require to be divested
starting from Dec-23's published financial report.
❑ BTN already include the sharia unit's spin off on its
Corporate Strategic Plan for the year of 2021-2025.
52
52
Page 53
Financial Snapshots UUS
Financial Highlight 2019 2020 2021 2022 2023 Growth %
Asset/ Liabilities
Total Assets (IDR Bn) 28,386 33,032 38,363 45,336 54,289 19.7 yoy
Total Financings (IDR Bn) 23,613 25,062 27,550 31,624 37,114 17.4 yoy
Total Deposits (IDR Bn) 21,860 23,831 29,263 34,641 41,803 20.7 yoy
Profitability
Net Profit (IDR Bn) 238 135 185 334 702 110.5 yoy
N I M equivalent 4.3% 3.1% 4.7% 5.0% 5.0% (4) bps
ROA 0.8% 0.4% 0.5% 0.7% 1.3% 56 bps
Asset Quality
NPF (Gross) 7.6% 6.5% 4.3% 3.3% 2.4% (92) bps
Financing at Risk (FAR) 18.6% 29.5% 25.3% 17.1% 14.4% (263) bps
NPF Coverage 38.7% 55.5% 106.7% 150.1% 158.1% 799 bps
Liquidity
FDR 108.0% 105.2% 94.1% 91.3% 88.8% (251) bps
CASA 37.3% 31.3% 37.4% 43.6% 50.0% 639 bps
53
Page 54
Sharia Business : Main Indicator Businesses
Sharia Net Profit (IDR Bn) Sharia Financings (IDR Tn) +17.4% yoy
+110.5% yoy
702.3
37.1
31.6
27.5
23.6 25.1
333.6
238.5
185.2
134.9
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Sharia Asset (IDR Tn) +19.7% yoy Sharia Total Deposits (IDR Tn)
+20.7% yoy
54.3
41.8
45.3
38.4 34.6
33.0 29.3
28.4 21.9 23.8
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
54
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Sharia Business : Financing & Deposits Composition
Financing Business Composition
Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Dec-23
Financings Type (IDR Bn) QoQ YoY
Outs % Outs % Outs % Outs % Outs % Outs %
Housing Financing 22,507 95.3% 24,305 97.0% 26,486 96.1% 30,812 97.4% 35,087 98.0% 36,587 98.6% 4.3% 18.7%
Subsidized Mortgage 11,631 49.3% 13,590 54.2% 15,829 57.5% 19,039 60.2% 22,004 61.5% 22,966 61.9% 4.4% 20.6%
Non Subsidized Mortgage 7,777 32.9% 8,363 33.4% 8,807 32.0% 9,948 31.5% 11,114 31.1% 11,604 31.3% 4.4% 16.6%
Other Housing Financing 84 0.4% 72 0.3% 59 0.2% 48 0.2% 39 0.1% 33 0.1% -1.2% -20.3%
Construction Financing 3,014 12.8% 2,280 9.1% 1,791 6.5% 1,776 5.6% 1,930 5.4% 1,982 5.3% 2.7% 11.6%
Non Housing Financing 1,106 4.7% 757 3.0% 1,064 3.9% 812 2.6% 705 2.0% 528 1.4% -25.1% -35.0%
Consumer Financing 186 0.8% 134 0.5% 118 0.4% 145 0.5% 154 0.4% 169 0.5% 9.6% 16.4%
Commercial Financing 920 3.9% 623 2.5% 946 3.4% 667 2.1% 551 1.5% 359 1.0% -34.9% -46.2%
Total Financing 23,612 100.0% 25,062 100.0% 27,550 100.0% 31,624 100.0% 35,792 100.0% 37,114 100.0% 3.7% 17.4%
Mortgage Financing 19,408 82.2% 21,953 87.6% 24,636 89.4% 28,988 91.7% 33,118 92.5% 34,571 93.2% 4.4% 19.2%
Deposits Composition CASA Ratio (%)
6.25% 5.52%
3.38% 2.71% 3.72%
Deposits (IDR Bn) Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 YoY
CASA 8,161 7,463 10,952 15,117 20,915 38.4%
Non CASA
Current Account 4,008 3,444 5,830 9,104 14,166 55.6% 56.4% 50.0%
62.7% 68.7% 62.6% CASA
Savings Account 4,153 4,019 5,122 6,013 6,750 12.3% CoF
Time Deposits 13,700 16,368 18,311 19,524 20,888 7.0% 43.6% 50.0%
37.3% 31.3% 37.4%
Total 21,860 23,831 29,263 34,641 41,803 20.7%
Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
55
Page 56
Sharia Business : Asset Quality
Sharia NPF & NPF Coverage Sharia Financing at Risk
NPF NPF Coverage
158.1% FAR Consumer FAR Commercial Total FAR
150.1%
106.7% 29.5%
55.5% 25.3%
8.5%
5.7%
17.1%
14.4%
3.5%
1.6%
6.5% 20.9% 19.6%
4.3% 13.6% 12.8%
3.3%
2.4%
Dec-20 Dec-21 Dec-22 Dec-23 Dec-20 Dec-21 Dec-22 Dec-23
Sharia Special Mentioned Financing (SMF) Sharia Non-Performing Financing (NPF)
Financings Type Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Financings Type Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Housing Financing 8.1% 7.1% 6.3% 6.7% 7.1% Housing Financing 5.4% 4.9% 3.9% 3.2% 2.3%
Subsidized Mortgage 7.7% 7.2% 6.4% 7.1% 7.1% Subsidized Mortgage 0.7% 0.6% 0.5% 0.9% 1.1%
Non-Subsidized Mortgage 8.1% 6.4% 6.3% 7.0% 7.3% Non-Subsidized Mortgage 1.6% 1.5% 1.4% 1.3% 2.0%
Other Housing Financing 12.5% 8.2% 9.8% 8.9% 11.0% Other Housing Financing 1.9% 2.4% 2.1% 5.5% 1.8%
Construction Financing 9.5% 9.3% 5.6% 1.6% 5.7% Construction Financing 33.3% 42.7% 45.1% 38.0% 18.1%
Non-Housing Financing 5.7% 4.6% 2.1% 0.0% 1.6% Non-Housing Financing 51.8% 48.5% 14.8% 9.0% 10.0%
Consumer Financing 3.7% 5.5% 6.1% 3.8% 3.8% Consumer Financing 11.9% 8.3% 3.1% 4.7% 3.6%
Commercial Financing 6.1% 4.2% 1.1% 0.0% 0.5% Commercial Financing 59.9% 68.2% 17.8% 9.9% 13.0%
Total Financing 8.0% 7.0% 6.2% 6.6% 7.0% Total Financing 7.6% 6.5% 4.3% 3.3% 2.4%
Mortgage Financing 7.8% 6.9% 6.4% 7.0% 7.1% Mortgage Financing 1.1% 1.0% 0.8% 1.0% 1.4%
56
Page 57
Investment Proposition
Page 58
BTN Provides End-to-End Mortgage Business to Fulfill National Housing
Needs
Innovative and unique
Beyond Mortgage Business Initiatives mortgage products
BTN at glance asStarted operating
a commercial bank Become an anchor
• Expanding to high-yield segments in KPR BTN Rent to Own
and issued the first bank to support one housing-related sectors A combined scheme between
corporate bond million houses program • Wholesale transaction system enhancement monthly rent payment and
to capture institutional customers savings allocation for future
house purchases
1976 1989 2002 2015 2025 KPR BTN Gaess
A mortgage product for the
millennial generation with
customized payment structure
Appointed by the Assigned as a Vision to be the best
Government as the sole commercial bank with mortgage bank in
institution to provide housing focus on commercial Southeast Asia
finance to middle/low-income housing finance
groups
Extensive digital
mortgage ecosystem
• BTN Properti
BTN’s Competitive Advantage in the Mortgage Sector • Rumah Murah BTN
• BTN Properti for
47 years of ~ 5.2 million units of ~ 85% of BTN’s
mortgages have been Developer
contribution to the portfolio is in • BTN Smart Residence
housing sector extended by BTN since 1976 housing loans • BTN Mobile
Market leader and ~82% market share of the Driving 185 economic
contributor to the national Subsidized sub sectors through
Market leader in
economy Mortgages housing business. Supportive government program
the mortgage sector
Total Mortgage Subsidized Mortgage
towards housing sector
Wide range of >7000 developer partners >3000 notary offices have
Continuous increase in the allocated
stakeholder most are subsidized collaborated with BTN in BTN BTN subsidized housing budget provided by
residential developers mortgages disbursement
coverage 39.1% 83.0% the government towards BTN.
58
Page 59
BTN’s Competitive Advantages as a Commercial Bank
3.0% 12.7 Mio 1.8 Mio Indonesian Government
aims to increase the
mortgage to GDP ratio, current housing needs in New marriages per year, with additional quality of living
well below neighboring Indonesia projected 77 million of Indonesia’s population conditions of Indonesians
ASEAN countries will add to the middle income segment by 2025
Serving the BTN has been leading
Sustainable government
nation’s housing Indonesia’s mortgage business ~ 5.2 million units of ~ 85% of BTN’s support in terms of annual
since the first mortgage mortgages have been portfolio is housing
needs for more budget for housing subsidy
disbursement in Indonesia in extended by BTN since 1976 loans
than 47 years and infrastructure development
1976
Market leader
BTN is the main contributor BTN’s mortgages are still ~ 82% of the
to the national housing dominant in the subsidized national Subsidized Driving 185 economic sub-
and contributor program as the largest segment (60% of BTN’s total Mortgages market sectors through housing
to the economy absorber of the subsidized mortgage portfolio) and first share and 39% of total businesses.
mortgage budget. time home buyers mortgages market
Engagement with Partnership with >7000 developer partners Nurturing new developers >3000 notary offices
a wide range of government/private and
with most being subsidized through BTN’s learning & have collaborated with BTN in
housing overseas institutions for
residential developers advisory program mortgages disbursement
stakeholders various funding sources
59
7
Page 60
2025
Aspirations
Best Mortgage Bank in South East Asia
Achieving the highest profitability and housing-linked asset growth among peers
A Double low-cost funding
Transforming channel capabilities to become the transactional bank and growing FBI
B Democratize housing
Delivering banking products to improve lives, financing in subsidized homes for mass segment, and building a new
direct-to-consumer channel for mass affluent segment
C Build one stop shop financial solution for consumer and housing-related businesses
Providing lending and investment solutions to triple non-mortgage portfolio and
double product holdings of emerging affluent customers
D Become a digital innovator and home of Indonesia’s best talents
Digitizing processes to build the most efficient operations and developing top-notch talents
E Build a high-quality portfolio and sustain low levels of NPL
Leveraging technology to develop integrated and rigorous risk management processes to lower NPL
in line with market sustainably
60
Page 61
Ongoing progress to become “The Best Mortgage Bank in
Southeast Asia in 2025”
Main Goals Objective in 2025 Progress and Achievement in 12M23
• Transforming e-channel capabilities to become the • Introducing New BTN Mobile with over than 2.7 million users
Double low-cost transactional bank for 3Mn lending customers which have 4.1 times higher savings balance than non-users.
funding • Implementing branch optimization to focus on low-cost
• Increasing fee-based income portion to 12%
deposits sales.
• Expanding non-traditional new funding sources • Fee-based income portion reached 12.2% in 12M23.
• Inauguration of 3 Consumer Sales Center (BSD, Kelapa Gading
Democratize • Financing 1Mn subsidized homes for mass segment
and Surabaya) to tap emerging affluent segment
Housing • Building new channels for emerging affluent • Average disbursement of emerging affluent mortgage reached
segment IDR239 Bn a month.
Build one-stop • Provide lending and investment solutions to triple • Deepening transaction banking ecosystem and provide supply
financial solution non-mortgage portfolio to IDR 150Tn chain financing with business savings solutions
for housing- • Double product holdings of emerging affluent • Elevating consumer products (BTN Investa, BTN Solusi, Wealth
segment to 2.2 products Management) to support cross-selling and upselling strategy
related businesses
Become a digital • Digitizing Process to build efficient operations • Developing digital channels and improve procurement strategy,
innovator and (CIR <50%) as a result, CIR recorded below 50% at 45.3% in 12M23
• Develop top-notch talents • The proportion of employee in business units to operation units
home of best reached 65: 35 to increase productivity
talents
• Leveraging technology to develop integrated and • Revisiting collection strategy by implementing dedicated Unit
Build high-quality
rigorous risk management processes to handle early bucket of consumer loan (Day Past Due up to 30
portfolio and days) and asset sales units
• NPL in line with market sustainably below 3%
sustain low NPL • Gradual improvement in loan booking in line with better early
payment default rate
Page 62
Appendix
Page 63
Overview and Market Perspective on BTN Activities
Current BTN Ratings From Various Rating
Precedent of BTN Corporate Action BBTN are included in some indices including
Agencies
ESG indices
up to Dec 2023
Total Proceeds of IDR 1.65 Tn
As of November 2023 through public portion of rights issue
Newly Issued Public Shares : PEFINDO i-Grade
Outlook : Stable 1,377,777,765 LQ45
National Short-Term Rating : F1+ (idn) IDX BUMN20
National Long-Term Rating : AA+ (idn) IDX30
Senior Unsecured : AA+
IDX80
IDX Small-Mid Cap (IDX SMC) Composite
IDX Small-Mid Cap (IDX SMC) Liquid
Kompas100
Infobank15
Oversubscribed by 1,6x IDX ESG Leaders
MSCI Indonesia Small Cap
As of June 2023
ESG Sector Leaders IDX Kehati
ESG Quality 45 IDX Kehati
IDX Value30
Outlook : Stable
Corporate Rating : F1+ (idn)
Investor33
National Long-Term Rating : AAA (idn) IDXFINANCE
Senior Unsecured : AAA SRI-KEHATI
Tempo – IDX Financials52
BTN’s Rights Issue was positively welcomed by
investors
63
Page 64
BTN’s Network and Distribution
Java Kalimantan Sulawesi
Regional Office 4 Regional Office - Regional Office 1
Branch Offices 48 Branch Offices 7 Branch Offices 8
National 2023 2022 2021
Sub-Branch Offices 1,981 Sub-Branch Offices 327 Sub-Branch Offices 156
Regional Office 6 6 6
Sharia Branch Offices 18 Sharia Branch Offices 3 Sharia Branch Offices 3
Sharia Sub-Branch Branch Offices 81 80 79
51 Sharia Sub-Branch Offices 3 Sharia Sub-Branch Offices 2
Offices
Sub-Branch Offices 541 539 545
ATM & CRM 1,503 ATM & CRM 94 ATM & CRM 103
Sharia Branch Offices 34 30 29
Sharia Sub-Branch
75 74 68
Sumatera Bali dan Nusa Tenggara Maluku dan Papua Offices
Regional Office 1 Regional Office - Regional Office - Outlets 737 729 727
Branch Offices 12 Branch Offices 3 Branch Offices 3 ATM and CRM 3,789 2,117 2,115
Sub-Branch Offices 774 Sub-Branch Offices 154 Sub-Branch Offices 71
Sharia Branch Offices 9 Sharia Branch Offices 1 Sharia Branch Offices -
Sharia Sub-Branch Offices 18 Sharia Sub-Branch Offices 1 Sharia Sub-Branch Offices -
ATM & CRM 241 ATM & CRM 50 ATM & CRM 24
64
Page 65
Board of Commissioners
Chandra M. Hamzah Iqbal Latanro
President Commissioner/Independent Vice President Commissioner/Independent
Currently a Partner at Assegaf Hamzah & Partners Law Previously served as Commissioner at PT Bank Mandiri
Firm. Previously President Commissioner of PT Taspen and Commissioner at PT Pemeringkat Efek
Perusahaan Listrik Negara (Persero) and Commissioner Indonesia
at Komisi Pemberantasan Korupsi.
Armand B. Arief Sentot A. Sentausa Andin Hadiyanto Herry Trisaputra Zuna
Independent Commissioner Independent Commissioner Commissioner Commissioner
Served as Commissioner and Senior Previously served as President Currently serving as Directorate General of Currently serving as Directorate General of
Consultant of Dunamis Organization Commisioner of Mandiri Inhealth, and Treasury, Ministry of Finance and Treasury, Ministry of Finance and
Services, Independent Commissioner at PT Director Distribution of PT Bank Mandiri Commissioner at PT Sarana Multi Commissioner at PT Sarana Multi
Bank Royal Indonesia. (Persero) Tbk Infrastruktur. Infrastruktur.
*) Passed away
Himawan Arief Sugoto Mohamad Yusuf Permana Ahdi Jumhari Luddin*
Commissioner Commissioner Independent Commissioner
Previously served as President Director Served as President Commissioner of PT BRI
Previously served as Commissioner at PT
of Perumnas Agroniaga Tbk, Independent Commissioner
Pelindo Multi Terminal and Commissioner at
PT Pelabuhan Indonesia I (Persero) of PT Bank DKI and Managing Director at PT
Bank Negara Indonesia (Persero) Tbk.
65
65
Page 66
Board of Directors
Experienced and Professional Management Team with Visionary Strategy
Nixon L. P. Napitupulu Oni Febriarto Rahardjo
President Director Vice President Director
Served as Vice President Director and Served as Vice President Director
Director of Finance Planning and Treasury at at Perum Perumnas
PT Bank Tabungan Negara (Persero) Tbk
Hirwandi Gafar Nofry Rony Poetra Jasmin Eko Waluyo
Director of Consumer Director of Finance Director of Distribution Director of Human Capital,
Served as Subsidized Mortgage Lending Served as Treasury Division Head and & Funding Compliance & Legal
Division Head and Business Development of Head of Regional Office I at Bank BTN
Served as SEVP of Consumer & Transaction Served as Human Capital Management
Subsidized Mortgage Dept Head at Bank BTN
and Regional CEO IV/JKT 2 at Bank Mandiri Division Head and CSD Head at Bank BTN
Andi Nirwoto Elisabeth Novie R. Setiyo Wibowo Hakim Putratama
Director of IT & Digital Director of Assets Management Director of Risk Management Director of Institutional Banking
Served as General Manager of Operational Served as Asset Management Division Served as Head of International and
Served as Consumer Credit Risk & Analytics
Information Technology, and General Head and Small and Medium Lending Transaction Banking at BPD Jabar & Banten
Group Head and Credit Portfolio Risk Group
Manager Solution and IT Security Division at Division Head at PT Bank Tabungan
Head at PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk Negara (Persero) Tbk
66
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Page 67
BTN Shares Information
BBTN Price Movement
Bank BTN Investor Profile
Volume (Lots)
BBTN stock investors increased by 40.1% yoy, driven by an
Close Price
increase in Retail Investors, indicating new interest on BBTN
shares.
30-12-22
1,350
30-12-21 30-12-23
1,730 1,250 Local Investor
Institution Retail
Number of
investor 56,639
(Dec-23) Proportion Proportion
to public 41.6 34.2
Sep-22
Sep-23
Jul-22
Dec-21
Dec-22
Dec-23
Mar-22
Mar-23
May-22
Nov-22
May-23
Nov-23
Feb-22
Aug-22
Feb-23
Jun-23
Aug-23
to public
(%) (%)
48,946
(Dec-22) Dec-22 464 Dec-22 48,482
Dec-23 484 Dec-23 55,885
BBTN Stock Performance Indicator
Shares 14.0
Book Value per 2,172 Outstanding
Share (IDR) 12.9 Foreign Investor
2,010
… (Bn shares)
Institution Retail
Number of
Price to Earning 5.0
Market 17.5 investor 259
Proportion Proportion
(PER) Capitalization (Dec-23)
to public 24.1 to public 0.1
4.7 17.4 (%)
(IDR Tn) 279
(%)
(Dec-23) Dec-22 214 65
Dec-22
Price to Book 0.6
… Dec-23 Dec-23 185
Dec-23 74
Value (PBV)
…0.7 Dec-22
67
Page 68
BTN Achievement
With sustainable performance improvements, BTN received various awards and appreciations
1st place in the category of Top GRC Award 2023 Star 5, Gold Winner of Mob-Ex Gold Award in the Best
Financial State-Owned The Most Committed GRC Awards 2023 for Best Mid-Cap Company
Company on Annual Report Leader 2023 dan The High Campaign Banking & Finance category, 23rd Best
Award (ARA) 2022 Performing Board of in Asia dan Oceania in the Mob- Companies in Asia Award
Commissioner on GRC 2023 Ex Awards 2023 by Finance Asia
Best of All by Audience, Activity & Engagement,
KIP Awards 2023
The Best Islamic Project Best Public Relation in Company The Best Quality Team, 106 influential companies and
Gold Winner Video Profile - Public idAAA/Stable from Finance House 2023, Strategy on Providing Innovative The Best Contact Center agencies in the field of
Relations Indonesia Award 2023 PT Pemeringkat Efek Indonesia (Pefindo) Euromoney Awards of Housing Loan Product and Services, Indonesia 2023 communication, Sewindu PR
Excellence 2023 Indonesia Public Relation Award 2023 Indonesia
68
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Page 69
Thank You Investor Relations PT Bank Tabungan Negara (Persero) Tbk. Menara BTN 16th Floor Jl. Gajah Mada No. 1 Jakarta 10130 Telp: +62 21 63870107 Email: investor_ relations@btn.co.id Website: www.btn.co.id
Names mentioned 44 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank New Housing Regulations
p.9
unresolved
org
Bank Indonesia
p.9 ×5
unresolved
org
Ministry of Finance
p.9 ×3
unresolved
org
Bank BTN ESG Framework
p.42
unresolved
org
Bank BTN’s ESG
p.50
unresolved
org
Assegaf Hamzah & Partners
p.65
unresolved
org
PT Bank Mandiri Firm. Previously
p.65
unresolved
org
PT Pemeringkat Efek Perusahaan Listrik Negara (Persero)
p.65
unresolved
person
Served
· Commissioner
p.65 ×5
unresolved
org
Directorate General of Consultant of Dunamis Organization
p.65
unresolved
org
PT Sarana Multi Bank Royal Indonesia.
p.65
unresolved
org
PT BRI Previously
p.65
unresolved
org
Agroniaga Tbk
p.65
unresolved
org
PT Bank DKI
p.65
unresolved
—
Vice President Director Served
· Vice President Director
p.66
unresolved
person
Vice
· President Director
p.66 ×2
unresolved
org
Bank BTN Served
p.66
unresolved
org
Bank BTN Andi Nirwoto
p.66
unresolved
org
PT Bank Tabungan Head
p.66
unresolved
org
Negara (Persero) Tbk
p.66
unresolved
org
Bank BTN Investor Profile Volume
p.67
unresolved
org
PT Pemeringkat Efek Indonesia
p.68
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