Back to announcement
20230720_BBTN_Laporan Informasi dan Fakta Material_31343067_lamp1.pdf
Other Text extracted BBTNSource file signed link, expires in 15 minutes
Extracted text 62
Page 1
1H23 Results Presentation PT Bank Tabungan Negara (Persero) Tbk Jakarta, 20 July 2023
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
Macroeconomics & HPI 05
Management Notes 10
Financial Performance 24
Asset Quality & Risk Management 39
Sharia Business 46
Sustainable Finance 49
Appendices 56
3
Page 4
Key Takeaways from 2023 Initiatives as of 1H2023
Improving Macroeconomic Conditions Stabilize Financial Performance
o The policy rate has begun to stabilize and is predicted to head down in late 2023 or early 2024, a
good sign for BTN to stabilize CoF back to optimal levels,
o With improving macroeconomic conditions, cashflow from existing debtors are also expected to
pick up, which is substantial to maintain LAR and NPL.
Transaction Banking Ecosystem Enhancement Has Gone On-Track
o Significant growth in institutional customer transactions through Cash Management System
(CMS) is noticable in 1H2023 through various methods of Bulk Payments or Virtual Account (VA).
o Transaction volume using CMS has also increased by 32% yoy along with the integration of BTN
Solusi into the Transaction Banking Ecosystem
Pick Up in Loan Yield as a Result of High-Yield Strategy
o In 1H2023, KRING (soft loan) disbursement has reached IDR 900 Bn and KAR (home equity loan)
disbursement has also reached IDR 900 Bn, with around IDR 180 Bn disbursement per month for
KRING and KAR.
o Sales forces in dedicated KUR outlets are 2x more productive than sales forces in the regular branches, as
measured by SME booking per sales force, which is significant for KUR disbursement growth.
Page 5
Macroeconomics & HPI
Page 6
Macroeconomics Highlight (1/2)
The Indonesian economy proceeded to grow positively in 1Q2023 and is predicted to continue doing as public optimism and buying power remain
high throughout the year
The economy recorded a steady growth with high
Real GDP Growth in 1Q2023
7.07
optimism going forward
5.72
5.07 5.05 5.02 4.97 5.02 5.01 5.44 5.01 5.03
o The Indonesian economy grew by 5.03% YoY in the first
quarter of 2023, slightly higher than the growth in the fourth
2.97 quarter of 2022 by 5.01% YoY.
3.51
o The Consumer Confidence Index (CCI) also continued to be
at a high level in Jun-23 at 127.13, indicating that domestic
-0.74 consumers remain optimistic with the economy going forward.
-2.19
-3.49 o On the other side, national motorcycle and car sales in May-
-5.32 23 also grew significantly by 113.42% and 69.15% yoy
respectively, indicating an increase in people's purchasing
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 power.
2019 2020 2021 2022 2023
Consumer Confidence Index as of Jun-23 Car & Motorcycle Sales as of May-23
128.94 200.00%
130.0
150.00% 113.42%
127.13
115.0 100.00% 65.15%
50.00%
100.0
> 100 Optimistic 0.00%
85.0
-50.00%
< 100 Pessimistic
Sep-22
Aug-21
Sep-21
Aug-22
Jul-21
Jan-22
Jul-22
Jan-23
Dec-21
Mar-22
Apr-22
Oct-21
Oct-22
Dec-22
Mar-23
Apr-23
Nov-21
May-22
Jun-22
Nov-22
Feb-23
May-23
Feb-22
70.0 77.31
Jan-18
Apr-18
Jul-18
Jan-19
Jan-20
Jan-21
Oct-18
Apr-19
Jul-19
Oct-19
Apr-20
Jul-20
Oct-20
Apr-21
Jul-21
Jan-22
Oct-21
Apr-22
Jul-22
Jan-23
Oct-22
Apr-23
Motorcycle Sales Growth (YoY) Car Sales Growth (YoY)
Consumer Confidence Index Baseline
Source: CBS, Bank Indonesia, processed 6
Page 7
Macroeconomics Highlight (2/2)
BI7DRRR is estimated to have reached its peak with the inflation level now already in BI's target range
Headline & Core Inflation in Indonesia and US
Policy Rate Trends Since First Hike by BI and Fed
as of Jun-23
BI has maintained its BI7DRR for 5
BI7DRR Rate RDG BI consecutive months Indonesia United States
Fed Funds Rate FOMC Meeting 5.75 5.75 5.95 10.0 9.1
5.25 5.50
6.00
4.75 8.0
4.25 4.50 4.75 6.6
3.75 4.00 5.25 5.25 4.50
3.50 5.00 3.36 6.0
3.25
First Fed 3.00 3.5
4.0 4.8
2.50 Pause in 15
1.75 Months 2.58
1.50 3.0
1.00 2.0
0.25 0.50 0.00 0.0
Jan-19
May-19
Jan-20
May-20
Jan-21
May-21
Jan-22
May-22
Jan-23
May-23
Sep-19
Sep-20
Sep-21
Sep-22
Sep-19
Sep-20
Sep-21
Sep-22
May-19
May-20
May-21
May-22
May-23
Jan-22
Jan-19
Jan-20
Jan-21
Jan-23
May-22
May-23
Mar-23
Nov-22
Mar-22
Aug-22
Jun-22
Jun-23
Apr-22
Oct-22
Dec-22
Jan-23
Feb-22
Sep-22
Apr-23
Feb-23
Jul-22
Headline Inflation Core Inflation Headline Inflation Core Inflation
(% yoy) (% yoy) (% yoy) (% yoy)
Market Expects Two More Hikes in FFR While BI to Remain
Steady until End of Year Policy Rate & Inflation Trends
FFR Probabilities from Fed Funds Futures BI7DRRR Forecast
5.75 5.75
o Within the last 5 months, Bank Indonesia has
1.75 5.384 5.50 6.00
5.50 continued to maintain its policy rate at the level of
0.75
5.30 5.50 5.75%, in line with Indonesia’s headline and core
5.10 5.00 inflation which continues to be within Bank Indonesia's
-0.25
4.90 4.25
target range of 3.0 ± 1%.
4.50
-1.25 4.70 4.00
o Meanwhile in the US, the first rate pause occurred at
the FOMC Meeting in June-23, but there are signs of
Sep-23
Jul-23
Dec-23
Jan-24
Mar-24
Nov-23
May-24
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
22 22 23 23 23 23 24 24 two more FFR hikes this year, before rate cut to
Actual Forecast
happen in early 2024.
Number of Hikes/Cuts Implied Rate (RHS)
Source: Bloomberg
Page 8
Banking Sector Highlight
Increasing lending and deposit rate slowed down banking sector performance as of April-23.
Deposit Rates (%)
6.00 5.50 Loan Growth (% yoy) Deposits Growth (% yoy)
5.75
5.00
3.95 11.75 11.35 12.21
10.64
4.00 3.50 4.18 9.93
10.53 11.11
3.00 2.83
1.91 5.24 8.08
1.63 6.08
2.00 1.92
9.01 8.18
0.64 0.67
1.00
0.67 8.03 7.00 6.82
- 6.54
Dec-22
Sep-22
Jul-22
Jan-23
Mar-23
Apr-23
Oct-22
Nov-22
Aug-22
Feb-23
6.45
-2.41
2018
2019
2020
2021
2022
Jan-23
Mar-23
Apr-23
Feb-23
Jan-23
Apr-23
Mar-23
2018
2019
2020
2021
2022
Feb-23
Current Account Savings Account 1 Mo Time Deposit BI 7DRRR
Lending Rates (%) Loan to Deposit Ratio (%) Non Performing Loan (%)
10.41
94.78
10.38 10.36 10.38 10.39 10.39 10.37 94.43
10.26 10.24 10.24 3.06
3.00
2.59 2.58
80.84 2.53
8.89 8.95 8.92 82.54 78.98 79.8 2.53
8.75
8.58 8.60 8.60 80.51 2.49
8.46 79.54 2.44
8.42 8.42 77.49 2.37
8.80 8.84
8.72
8.62
8.51
8.26 8.34
8.15 8.18
Jan-23
Mar-23
Apr-23
2018
2019
2020
2021
2022
Feb-23
8.13
Jan-23
Mar-23
Apr-23
2018
2019
2020
2021
2022
Feb-23
Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23
Working Capital Investments Consumption
Source: OJK, processed 8
Page 9
BTN House Price Index as of 1H2023
House prices continued to grow with an average growth of 7.14% yoy, driven by significant growth in large-type housing
HPI National HPI Type 36
7.18% 7.02%
7.14%
6.80% 6.66% 6.67% 6.49%
6.56% 6.58% 6.20% 6.25%
6.00% 5.59%
5.64% 5.54% 5.39%
5.24% 5.44%
5.02% 4.94%
4.23% 4.26%
2.05% 1.87% 2.09%
1.78% 1.78% 1.66% 1.60% 1.72% 1.67%
1.59% 1.55% 1.50% 1.57% 1.57% 1.43% 1.44% 1.35%
1.16% 1.03% 1.09% 1.11%
1.07%
Sep-21
Sep-22
Dec-20
Dec-21
Dec-22
Mar-21
Mar-22
Mar-23
Jun-21
Jun-22
Jun-23
Sep-21
Sep-22
Dec-20
Dec-21
Dec-22
Mar-21
Mar-22
Mar-23
Jun-21
Jun-22
Jun-23
Index QoQ YoY Index QoQ YoY
HPI Type 70
HPI Type 45
9.92%
8.20%
8.64%
6.65% 6.80%
5.73% 6.61%
6.08% 6.02% 5.88%
4.51% 4.86% 5.49%
4.28% 4.51%
4.00% 4.22% 4.21%
3.38% 3.40% 3.46% 3.52%
2.97% 3.25%
2.67% 2.66%
1.78% 2.09% 1.75%
1.64% 1.70% 1.52% 1.61% 1.46%
1.31% 1.37% 1.01% 1.05% 1.01%
0.84% 0.86% 0.91% 0.63%
0.34%
Dec-20
Dec-21
Dec-22
Sep-21
Sep-22
Mar-21
Mar-22
Mar-23
Jun-23
Jun-21
Jun-22
Sep-21
Sep-22
Dec-20
Dec-21
Dec-22
Mar-21
Mar-22
Mar-23
Jun-21
Jun-22
Jun-23
Index QoQ YoY Index QoQ YoY
9
Page 10
Management Notes
Page 11
BTN Provides End-to-End Mortgage Business to Fulfill National Housing Needs
Carrying on to excel in the housing sector through years of continuous improvements
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 million units of ~ 90% 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 ~83% market share of the Driving 174 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 >5000 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.
11
Page 12
Ongoing progress to become “The Best Mortgage Bank in Southeast Asia in 2025”
Ongoing focus on the transformation processes with positive results from ongoing achievement to accomplish 2025 vision.
Main Goals Objective in 2025 Progress and Achievement in 1H2023
• Transforming e-channel capabilities to become the • Introducing New BTN Mobile with over than 500 thousand users
Double low-cost transactional bank for 3Mn lending customers • Implementing branch optimization to focus on low-cost deposits
funding sales
• Increasing fee-based income portion to 12%
• Fee-based income portion reached 11.74% in 1H23, from 7.37%
• Expanding non-traditional new funding sources in 1H22
• Inauguration of 2 Consumer Sales Center (BSD and Kelapa
Democratize • Financing 1Mn subsidized homes for mass segment
Gading) to tap emerging affluent segment
Housing • Building new channels for emerging affluent • New disbursement of emerging affluent mortgage in Kelapa
segment Gading has reached IDR50 Bn within 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, as
innovator and (CIR <50%) a result, CIR recorded below 50% at 47.76% in 1H23
• Develop top-notch talents • The proportion of employee in business units to operation units
home of best reached 60: 40 to increase productivity
talents
• Leveraging technology to develop integrated and • Revisiting collection strategy by separating a single Consumer
Build high-quality
rigorous risk management processes Collection Unit to collection business and bad asset sales units
portfolio and • Gradual improvement in loan booking in line with better early
• NPL in line with market sustainably below 3%
sustain low NPL payment default rate
Page 13
Overall Improvement in BTN's Financial Indicators
Initiatives on efficiency and fee-based optimalization are showing positive progresses followed by declining interest expense growth which
indicates business improvements.
Highest Ever Total Revenue (Annualized) Interest Expense Growth and BI7DRR Sensitivity
(Interest Income + Other Operating Income) 5.75%
(IDR Bn) +12.64% yoy 5.50% • As of 1H2023, interest
Total revenue in BI7DRRR increase of about 65% 42.69%
30,476 since first hike expense growth is less
1H2023 reached (3.50% -> 5.75%) sensitive (only +42.69%
its highest
BI7DRR yoy) lower than BI7DRR
annualized
increase of 65% since
number since Interest Expense
28,316 28,121 Growth (yoy) August 2022
2019, in line with 4.25%
27,792
27,682 • Interest expense growth
growing Interest
27,056 started to decline following
26,828 Income and
the decrease in monthly
Other Operating
mutations of interest
Income.
3.50% expense due to funding
Sep-22
recomposition.
Sep-20
Sep-21
Dec-19
Dec-20
Dec-21
Dec-22
Mar-20
Mar-21
Mar-22
Mar-23
Jun-20
Jun-21
Jun-22
Jun-23
FY20
FY21
FY22
1H21
1H22
1H23
1Q21
3Q21
1Q22
3Q22
1Q23
CIR Trends Overhead Costs (IDR Bn)
Highest Fee-Based Income in 5 Years
-4.73% yoy
% FBI 7.95 7.85 8.25 7.37 11.26
57.81%
CIR slightly 6,465
To total revenue increased in 6,159
56.43% 1H23 due to
decreasing
+70.05% yoy
Net Interest
Income
1,715.83
51.99%
1,103.34 1,053.25 1,127.54 1,009.00 47.76%
FBI 1H22 1H23
(IDR Bn)
46.60% Overhead costs were able to be pushed
down due to centralization in
procurements and rents which boost
1H19 1H20 1H21 1H22 1H23
1H19 1H20 1H21 1H22 1H23 efficiency.
13
Page 14
Strategic Initiatives to Improve Low-Cost Funding are Necessary in Supporting BTN’s
Vision to Become The Best Mortgage Bank in South East Asia by 2025
Main Goals 1 : Double low-cost funds to more than IDR 270 Tn
• Transforming e-channel capabilities to become the transactional bank for 3 Mn 2025F
lending customers
• Increasing fee-based Income Portion to 12% 2024F
• Expanding non-traditional and new funding sources
±270 T
2023F ±235 T
>55%
±200 T >54%
1H23
170 T >53%
2022
54% Funding Initiatives in 2023
156 T
2021 Enhancing Retail and Transaction Banking Businesses and Increasing Product
1 Holdings through Cross Selling Strategies
49%
131 T
2 Funding Recomposition Strategies to Reduce Blended Cost of Fund
2020
44%
115 T 3 Digital Capability Improvements with Newly-Added Features on The New BTN Mobile
CASA
(IDR) 41%
CASA Ratio
Page 15
Enhancing Transaction Banking Businesses Through Cross Selling Strategies (1/2)
5 Targeted Sectors for Potential Cross Selling Strategies One-Stop Solution Transaction Banking Ecosystem
Customers Payment to Vendors Vendors
Education (BTN CMS)
Establishing a dedicated
5 Focus Sectors Health Wholesale Transactions Or SCF* to
Unit to increase trade Payment from vendors
for Transaction Customers
finance activities and CMS (Virtual Account)
Banking Property Related
activation rate while also
Ecosystem increasing retail banking
Employee
Development Trade
cross-selling from payroll
Institutional
customers Payroll to Customers
Industrial Estate Employee using Tax Office
BTN CMS
Payroll-based Tax Payment
loans using
BTN KRING
(BTN CMS)
*Supply Chain Financing
Cash Management System (CMS) Enhancements
Trade Finance Actvities Performance
CMS 1 2 3
Formulating business Capability and Service & business Fee Based Income Trx Volume
Roadmap competency enhancement process improvements
piloting roadmap on 3
targeted ecosystems Bank Guarantee IDR 22.19 Bn IDR 1.35 Tn
Transaction
(as of 1H2023) +241.66% yoy +14.71% yoy
+27.68% +32.14%
1281 as of Jun 23 MoM
37 Tn as of Jun 23 MoM 17.7 Tn as of Jun 23
Number of Account (Unit) Trx Volume (IDR) Current Account with CMS
Trade Finance
Transaction IDR 10.71 Bn IDR 1.50 Tn
(as of 1H2023) +222.08% yoy +59.03% yoy
BTN CMS continues to significantly grow in terms of transactions as of 1H2023.
15
Page 16
Enhancing Retail Business Transactions and Increasing Product Holdings Through
Cross Selling Strategies (2/2)
BTN Bisnis Cross Selling Efforts with KUR and EDC
Customers to Increase Average Transactions
BTN Bisnis Savings
Balance in Business-Dense
Areas as of 1H2023
VoA NoA
Outlet areas:
66.75% YoY 166.80% YoY
HOS Cokroaminoto, IDR 2.43 Tn 27 thou
Kuningan JKT (as of June 2023) (as of June 2023)
Buah Batu, Bandung
Dramaga, Bogor
Teluk Jambe, Karawang Jun-23 32.44% mom Jun-23 40.63% mom
Palu, Palu May-23 May-23
IDR 249 Bn
Total BTN Bisnis Balance in IDR 90 Bn
IDR 188 Bn IDR64 Bn
those areas:
IDR 135 Bn
Average BTN Bisnis VoA Bundling KUR VoA Bundling EDC
Balance in those areas:
IDR 27 Bn • The average savings balance of BTN Bisnis from KUR & EDC bundling
(per outlet) is 2x higher than the average savings balance of regular BTN Bisnis
customers.
• The number of transactions through BTN Bisnis bundling with KUR &
EDC is 3x higher than regular BTN Bisnis customers
16
Page 17
Funding Recomposition Strategies to Reduce Blended Cost of Fund
Total Funding Composition (%) Total Cost of Fund Trend
7.52%
12.75% 12.72% 12.29% 11.37% 11.74% 11.67% 12.11% 7.00%
6.82% 6.65% 6.52% 6.39%
High 6.23%
35.11% 33.62% Cost
41.58% 37.98% 5.39% 5.38%
42.12% 42.21% 42.03%
4.02% 3.98% 3.94%
7.12% 6.51%
7.46% 3.85% 3.24% 3.20% 3.95% 3.90%
6.37% 3.20% 3.57%
6.48% 6.54% 6.45% 3.81% 3.00% 2.92% 3.08%
2.89%
2.85% 2.81% 2.97%
Low 2.79%
47.76% Cost 2.06% 2.10%
42.82% 46.10% 1.85%
38.65% 38.53% 39.23% 40.68%
1.39% 1.40% 1.54%
1.36%
FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
CASA TD Retail TD Institutions Wholesale Funding Total Funding
• As BTN’s funding franchise revamped in the past years, BTN will now target a gradual reduction in its wholesale funding portion as it bears the highest
Cost of Funds
• Encouraging Time Deposit switching from institutional to retail as it has lower deposit rates (1% below institutional TD rates).
• Forming a special task force team within the institutional funding unit to target institutional funding customers with an average balance of IDR <500
Bn throughout Indonesia.
17
Page 18
Branch Transformation Has Yielded Positive Results as Branch Productivity Improved
Branch transformation has been carried out to shift 534 outlets from point of services to point of sales.
More than 96 Sub-Branch offices have been relocated Performance of Top 5 Very Productive Employee composition will be more
to high-potential areas since 2020 with improvement Sub Branch Outlets (IDR Mn) focused on business-related units
in the outlet performance Total Loan Disb. 428,949 in the future
Total Deposits 2,140,227 Before Existing Next steps
Mayang Outlet
Total Net Profit 54,892 Business
related 40 60 65
(%)
Anduonohu Outlet (IDR)
42 Bn
Operation
(%)
60 40 35
39 Bn
Deposits Loan
Pulomas Outlet Disbursement
As productivity increased over the
Cimanggu Outlet, years, financial numbers also
Duta Plaza Outlet Anduonohu Outlet improved
27% increased its productivity
Cimanggu Outlet (IDR) from Less Productive to Very
Pulomas Outlet (IDR)
Productive branch
763 Bn 107 Bn 79 Bn Very Productive Branch: or 51 Outlets (Dec 2022 to June 2023)
47 Bn • Optimal Loan Growth, Optimal
Deposits Loan
Deposits Loan
Disbursement
Disbursement Deposits Growth, and High Net Very productive Sub Branches have higher financial
Profit Growth indicators than Less Productive Branches
Less Productive Branch: 70%
Mayang Outlet (IDR) Duta Plaza Outlet (IDR) • Moderate Loan Growth, Moderate
IDR 78 Bn
higher
Deposits Growth, and Moderate Average Deposits
42 Bn 173 Bn 30 Bn
13 Bn Net Profit Growth 53%
Average New Loan IDR 78 Bn
Deposits Loan higher
Deposits Loan
Disbursement
Disbursement Book
131%
190+ 230+
outlets with >IDR50 Bn
50+ IDR 1.5 Bn
outlets with >IDR1 Bn net outlets with >IDR 500 Average Net Profit
higher
profit Deposits Mn fee-based income 24%
Average Fee-based IDR 0.3 Bn
higher
Page 19
Progress on Emerging Affluent Mortgage Disbursement Through Newly-
Established Consumer Sales Center
Consumer Sales Center Initial Results of Sales Center BSD & Kelapa Gading Since
3 Locations of Consumer Grand Lanching
• Focusing on emerging affluent (>IDR750
Mn) market Sales Center
• New operating model: separated from the
branch offices (Kelapa Gading Square, Bumi Serpong Damai, Target
• Focusing on approaching 27 national-scale Surabaya) Sales Center
Implementation of
70%
developers
Kelapa Gading
sales center is
Sales Center targeted to add-up
BSD IDR 500 Bn per month
to the total
Representing total emerging affluent disbursement of Non-
Sales Center
market share in Indonesia Subsidized Mortgage
Sales Center Official Launch in BSD & Kelapa Gading Surabaya
Non-Subsidized Mortgage Disbursement
(IDR Bn)
12.30% YoY
Ticket Size 6,114
>IDR750 Mn 4,968 5,079 4,749 5,026
4,476
Emerging
Affluent
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
• Emerging affluent mortgage booking per month has reached IDR
140 Bn on average
• This disbursement size made up around 10% of total non-
subsidized mortgage disbursement per month
Page 20
Initial Updates on the High Yield Asset Initiatives
KUR Outstanding as of 1H2023 Drivers for Increasing KUR Disbursement in 2023 KUR Strategies to achieve disbursement target until year end
(IDR Bn)
KUR Outstanding 10 KUR Center Pilot Project in Jakarta Greater Area 1 2 3 4
K 123.10% YoY
1,192
to Total Loans and East Java equipped with dedicated sales person for
KUR.
Adding more KUR Partnering KUR loan
KUR & BTN
U 0.18% 0.39% Average KUR disbursement/sales person as of Center outlets with
a target of 100
Mortgage bundling
with E-
Commerce
processing
optimization &
682 1H22 1H23 Jun-23 ±IDR 750 Mn products for
R 513
KUR share to total loans
KUR Center
outlets by the
entrepreneur
mortgage
to boost KUR
BTN
sales force
enhancement
will be targeted to be at ±IDR 136 Bn average KUR Disbursement end of 2023 disbursement
customers
Jun-22 2022 Jun-23 8-10% by 2025 per month.
Potential Top up for Home Equity Loan Scheme Home Equity Loan New Disbursements Have Rapidly New Business Model for More Aggressive Disbursement
Increased (IDR Bn)
K
400 thou +2%
additional yield
QoQ
YoY
: +13.86%
:+147.29% 1 Tele sales intensification to promote top-up loan
Potential borrowers 10.39
539
A o Loan has been running for 8.37%
%
292 347
451 451 2
Implementing ‘BTN Ready’ digital lending platform with KAR
Top Up feature
around >5 to 10 years
R o Maximum age of 45 years
Personal Dedicated sales force in newly-established
old 3 Banking Unit business unit to boost KAR promotion &
o Collectability 1 for the last Average yield of Average yield of 2Q22 3Q22 4Q22 1Q23 2Q23 strategies
1 year Mortgage Home equity Loan New Unit
Selective Growth on High Yield Consumer Loan (KRING) Loan Yield Picked up from High Yield Consumer Loan
K (IDR Bn) o Aggressive disbursement on high-yield consumer loans
(KRING) throughout 1H2023 has been able to pick up
Growth % Yield
R 6,893 6,740 7,010
6,407 6,543 (% Yoy) (as Jun 23) consumer loan yield to 9.76% in Jun-23.
3,056 o KRING new disbursement up to Jun-23 has reached IDR 940
I
3,235 2,923 2,348 2,307 Total consumer
loan -5.08% 9.73% as8.96%
of Jun 22 Bn with an average new disbursement growth of 10.49% yoy.
4,236 o Focusing on offers and promotions through telesales, payroll
N 3,658 3,817 3,954 4,058 Low yield
1)
consumer loan -28.70% 7.04% customers, and joint financing to help boost KRING
G 1H22 3Q22
High Yield Consumer Loan
FY22 1Q23 1H23
Low Yield Consumer Loan
High yield 2)
consumer loan 15.82% 10.73%
disbursement.
1)
Short-term loan (Swadana), Soft loans for employee 2) Softloan (Kring), Multimanfaat iB (Sharia), Automotive iB (Sharia)
20
Page 21
Digital Capability Improvements with Newly-Added Features on The New BTN Mobile
New features continously brought up to improve customers’ experience and digital lifestyle
E-Deposito
e-Deposito
BTN Felas & e-Deposito
Performance as of Jun-23 What’s Next?
Special rates for your e-Deposito Rupiah BTN Felas
New BTN Mobile 2.0
investment
Balance
IDR196 Mn More than just Banking
E-Deposito
IDR160 Bn
Balance
Rate up to Investment
Deposito BTN Ritel
Valas 4.25% p.a Total NoA 4,399
UI Revamp
Per June 2023 for e-Deposito *e-Deposito go live in Feb-23
Rupiah Mutual Fund SBN Bancassurance
while BTN Felas go live in Mei
2023
New products to boost
More Advanced customers’ digital lifestyle are
BTN Felas Mobile Features still in development and will be
added soon to the BTN Mobile.
Forex transaction facilities ranging from
exchange rate info, forex transfers, and Digital Lifestyle
forex trading all integrated to the BTN Integration with Brands
Digital Lifestyle
Mobile app.
Integration
21
Page 22
BTN’s Digital Channel Performance
BTN’s digital channel performance in 1H2023 grew strongly driven by recent enhancements in mobile banking, QRIS Merchant, and EDC
Mobile Banking Performance QRIS Merchant Performance EDC Performance
User Acquisitions (Thou) Trx Volume (IDR Tn) 1H23 Number 1H23 1…
Number
527 % 167 %
of Trx of Trx
78% YoY 47% YoY YoY 1H22 YoY
1H22 172,681 (unit) 627,630 (unit)
1H23 593 1H23 24.3
1H22 332 1H22 16.6
1H23 … User 1H23 … User
111% 49 %
Acquisitions Acquisitions
1H22 2,500 YoY 1H22 7,026 YoY
(unit) (unit)
No of Trx (Mn)
66% YoY
1H23 Trx 1H23 … Trx
698 % Volume 119 %
1H23 145.4 YoY Volume
1H22 … YoY (IDR Mn) 1H22 162,505 (IDR Mn)
1H22 87.4
BTN Mobile Feature Enhancement Roadmap in 2023
Q2 Q3 Q4
IDR 20.88 Mn
Average balance of BTN Mobile Banking o Loan Tracking
o Online Open o Mutual Funds o Delivery and activation
Second Account Investment of debit cards
o Online FX Open o Gamification
Customers who have registered for BTN Mobile Banking o SME Loan o Online Tax Reporting
Account & FX Application
have 4.1 times higher savings balance compared to Transfer o Virtual Card
o Government o Gift Card
customers who have not registered for BTN Mobile Bonds Investment
Banking.
22
Page 23
Digital Mortgage Ecosystem
Creating Sustainable Value Chain within the Digital Ecosystem
(as of June 2023)
Mitra Developer
(MSi, DEWE,
CRI)
Services to property developers to be able to Services for prospective housing loan customers which After sales services to meet people needs for regular payment
do stock management online and available provide an easy online access and are available at any time transactions
at any time (Electricity, Water & Bills, Security Fees, Parking Fees,
Maintenance Fees, and etc.)
7,974 Key Features: 28.7 Mil Key Features:
Property Visitors 27 Key Features:
Developers BTN Properti for Developer Residences
Integrated with Government
Mobile Based. Land Plotting (Sikasep) Billing Payment
448 Thou
12,689 Members 7.5 Thou
Dashboard monitoring Instant Approval Members Utilities
Housing
Projects
User Management
IDR 768 Bio Housing Services
Disbursements Virtual Expo
910 Thou IDR 6.56 Bn
Online Mortgage Trx Value
Property
Listing Application 10,630 Online Loan Tracking
Applications
23
23
Page 24
Financial Performance
Page 25
Financial Highlights
Strong capital improvement for more sustainable growth going forward.
Financial Highlights Full Year of First Half of Growth
(IDR Bn) 2018 2019 2020 2021 2022 2022 2023
Total Assets 306,436 311,777 361,208 371,868 402,148 381,741 400,545 4.93% yoy
Total Loan & Financing 238,298 255,825 260,114 274,835 298,282 286,152 307,669 7.52% yoy
Total Deposits 230,264 225,401 279,135 295,976 321,937 307,309 313,256 1.94% yoy
Equity 23,840 23,836 19,988 21,407 25,909 20,985 28,395 35.31% yoy
Net Profit 2,808 209 1,602 2,376 3,045 1,471 1,474 0.23% yoy
CAR (Tier 1) 15.97% 15.60% 13.64% 13.80% 16.13% 12.74% 17.14% 440 Bps
CAR (BI) 18.21% 17.32% 19.34% 19.14% 20.17% 17.36% 20.42% 308 Bps
NIM 4.32% 3.32% 3.06% 3.99% 4.40% 4.58% 3.62% (96) bps
CIR 52.28% 58.08% 53.85% 48.18% 46.66% 46.07% 47.76% 170 bps
ROE 14.89% 1.00% 10.02% 13.64% 16.42% 16.42% 11.95% (447) bps
ROA 1.34% 0.13% 0.69% 0.81% 1.02% 1.03% 0.93% (10) bps
NPL (Gross) 2.81% 4.78% 4.37% 3.70% 3.38% 3.54% 3.66% 11 bps
NPL (Nett) 1.83% 2.96% 2.06% 1.20% 1.32% 1.04% 1.75% 71 bps
Coverage Ratio 49.24% 50.01% 115.02% 141.82% 155.65% 149.74% 139.12% (1,062) bps
LDR 103.49% 113.50% 93.19% 92.86% 92.65% 93.12% 98.22% 510 bps
LCR 108.99% 136.31% 256.32% 283.16% 238.50% 233.16% 192.18% (4,098) bps
25
Page 26
Balance Sheet
Steady assets growth driven by loans and uptick in CASA
Balance Sheet Summary Full Year of First Half of
Growth
(IDR Bn) 2018 2019 2020 2021 2022 2022 2023
Total Earning Assets 266,356 284,338 335,630 331,979 360,379 357,217 367,887 2.99% yoy
Term Deposit with BI 11,204 6,134 11,583 5,550 4,578 9,263 6,968 -24.77% yoy
Total Loan & Financing 238,298 255,825 260,114 274,835 298,282 286,152 307,669 7.52% yoy
Government Bond/Securities 15,021 18,628 59,494 48,313 53,688 58,727 49,271 -16.10% yoy
Other Earning Assets 1,833 3,751 4,439 3,281 3,831 3,076 3,979 29.39% yoy
Provision on Earning Asset (3,320) (6,145) (13,066) (14,440) (15,679) (15,185) (15,657) 3.11% yoy
Total Non Earning Assets 43,401 33,584 38,645 54,329 57,449 39,709 48,315 21.67% yoy
Total Assets 306,436 311,777 361,208 371,868 402,148 381,741 400,545 4.93% yoy
CASA 99,927 97,754 114,764 131,120 156,202 137,453 170,218 23.84% yoy
Current Account 58,049 52,117 72,045 79,199 114,007 90,409 128,677 42.33% yoy
Saving Account 41,877 45,638 42,719 51,922 42,195 47,044 41,541 -11.70% yoy
Time Deposits 130,337 127,647 164,371 164,856 165,736 169,855 143,038 -15.79% yoy
Third Party Deposits 230,264 225,401 279,135 295,976 321,937 307,309 313,256 1.94% yoy
Securities issued 17,036 19,784 15,810 12,372 8,652 10,279 6,638 -35.43% yoy
Deposits from Other Banks 6,249 4,522 35 74 179 1,409 1,526 8.31% yoy
Repurchase Agreements 948 947 0 0 0 0 3,482 yoy
Borrowings 18,499 28,465 34,002 30,822 33,979 31,354 34,994 11.61% yoy
Non Interest Bearing Liabilities 9,599 8,823 12,238 11,218 11,491 10,405 12,253 17.76% yoy
Total Liabilities 282,596 287,941 341,221 350,462 376,239 360,756 372,150 3.16% yoy
Total Equity 23,840 23,836 19,988 21,407 25,909 20,985 28,395 35.31% yoy
Total Liabilites & Equity 306,436 311,777 361,208 371,868 402,148 381,741 400,545 4.93% yoy
26
Page 27
Asset & Earning Asset Composition
Earning assets building up strongly, dominated by loans and financing
Total Earning Asset (IDR – Tn) Asset Composition
Other Earning Asset Non Earning Asset Earning Asset
Term Deposit With BI
14.16% 10.77% 10.70% 14.61% 14.29% 10.40% 12.06%
367.89
Securities 360.38 357.22 3.98
Loans & Financing 3.83 6.97
4.58 3.08
335.63 9.26
331.98
89.60%
3.28
89.30%
89.23%
4.44
87.94%
49.27
85.84%
85.71%
85.39%
11.58 5.55 53.69
58.73
284.34 48.31
59.49
3.75
266.36 6.13
1.83 18.63
11.20 2018 2019 2020 2021 2022 1H22 1H23
15.02
Earning Asset Composition
307.67
298.28
Term
286.15
Securities
274.84
Deposit
260.11
255.83
13.39% With BI
238.30
1.89%
Loans &
Financing Other
83.63% Earning
Asset
1.08%
2018 2019 2020 2021 2022 1H22 1H23
27
Page 28
Loan Mix
Loan growth remains driven by subsidized and non-subsidized mortgages although non-housing loans portion slightly increased as disbursement on non-
housing higher yield intensified
2018 2019 2020 2021 2022 1H22 1H23
Loan Type (IDR Bn) Growth
Outs % Outs % Outs % Outs % Outs % Outs % Outs %
Housing Loan 213,619 89.64% 229,522 89.72% 234,785 90.26% 244,823 89.08% 261,705 87.74% 251,914 88.04% 269,483 87.59% 6.97% yoy
Subsidized Mortgage 98,173 41.20% 111,130 43.44% 120,720 46.41% 130,683 47.55% 145,860 48.90% 137,255 47.97% 152,167 49.46% 10.86% yoy
Non Subsidized Mortgage 77,760 32.63% 80,649 31.52% 79,938 30.73% 83,251 30.29% 87,824 29.44% 85,305 29.81% 90,839 29.52% 6.49% yoy
Other Housing Loan 8,426 3.54% 8,032 3.14% 7,256 2.79% 6,976 2.54% 6,970 2.34% 6,852 2.39% 7,255 2.36% 5.88% yoy
Construction Loan 29,261 12.28% 29,711 11.61% 26,871 10.33% 23,914 8.70% 21,051 7.06% 22,503 7.86% 19,222 6.25% -14.58% yoy
Non Housing Loan 24,679 10.36% 26,303 10.28% 25,329 9.74% 30,012 10.92% 36,576 12.26% 34,238 11.96% 38,186 12.41% 11.53% yoy
Consumer Loan 5,695 2.39% 4,896 1.91% 5,119 1.97% 6,559 2.39% 7,010 2.35% 6,893 2.41% 6,543 2.13% -5.08% yoy
Commercial Loan 18,984 7.97% 9,032 3.53% 8,270 3.18% 9,512 3.46% 11,563 3.88% 11,990 4.19% 10,294 3.35% -14.14% yoy
Corporate Loan 12,375 4.84% 11,940 4.59% 13,942 5.07% 18,004 6.04% 15,355 5.37% 21,349 6.94% 39.04% yoy
Total Loan & Financing 238,298 100.00% 255,825 100.00% 260,114 100.00% 274,835 100.00% 298,282 100.00% 286,152 100.00% 307,669 100.00% 7.52% yoy
*) Reclassified Note: Figures on graph and table include Sharia Financing
Non Housing Loans
Gross Loan (IDR Bn) +7.52% yoy Composition by Business Segment Housing Loans
307.67
298.28 10.36% 10.28% 9.74% 10.92% 12.26% 11.96% 12.41%
286.15
274.84
255.83 260.11
90.26%
89.72%
89.64%
89.08%
88.04%
87.74%
87.59%
238.30
CAGR 6.7%
2018 2019 2020 2021 2022 1H22 1H23 2018 2019 2020 2021 2022 1H22 1H23
28
Page 29
Mortgages
Mortgages have grown by 9.19% yoy, well above the last 5 years growth of 7.35% CAGR
Total Mortgages (IDR Tn) +9.19% yoy Mortgages (%)
233.68 243.01
Subsidized Mortgage Non Subsidized Mortgage
213.93 222.56
191.78 200.66 1H23 62.62% 37.38%
175.93
1H22 61.67% 38.33%
2022 62.42% 37.58%
2021 61.09% 38.91%
CAGR 7.35%
2020 60.16% 39.84%
2019 57.95% 42.05%
2018 2019 2020 2021 2022 1H22 1H23
Subsidized Mortgages (IDR Tn) Non - Subsidized Mortgages (IDR Tn)
+10.86% yoy
6.49% yoy
145.86 137.25 152.17
130.68 90.84
120.72 87.82 85.30
111.13 80.64 83.25
98.17 77.76 79.94
CAGR 10.40% CAGR 3.09%
2018 2019 2020 2021 2022 1H22 1H23 2018 2019 2020 2021 2022 1H22 1H23 29
Page 30
Loan Disbursement
Strong disbursement in non-subsidized mortgages and other housing loans
(IDR Tn) QoQ : 2019 2020 2021 2022 2023
+13.86%
21.32
18.73
18.12
10.05
11.33
15.38
19.66
14.77
23.54
13.17
11.66
15.10
21.95
13.76
15.87
18.33
26.69
7.31
Q1 Q2 Q3 Q4
Full Year of First Half of
Loan Type (IDR Bn) Growth
2018 2019 2020 2021 2022 2022 2023
Housing Loan 65,095 44,117 29,712 35,399 47,537 20,793 24,925 19.87% yoy
Subsidized Mortgage 28,578 19,272 17,064 18,410 24,332 10,877 11,184 2.82% yoy
Non Subsidized Mortgage 18,350 12,498 6,935 10,969 14,343 6,155 8,036 30.56% yoy
Other Housing Loan 1,875 1,365 683 1,069 1,347 531 1,000 88.49% yoy
Construction Loan 16,292 10,982 5,030 4,952 7,516 3,230 4,705 45.65% yoy
Non Housing Loan 21,738 20,587 15,177 24,206 40,021 18,127 15,124 -16.57% yoy
Consumer Loan 6,239 4,184 4,251 7,182 8,516 3,155 1,478 -53.15% yoy
Commercial Loan 13,280 4,255 3,884 9,036 20,807 9,006 6,534 -27.45% yoy
Corporate Loan 2,218 12,148 7,041 7,988 10,698 5,965 7,111 19.21% yoy
Total Loan & Financing 86,833 64,704 44,888 59,605 87,558 38,920 40,049 2.90% yoy
Note: Figures on graph and table include Sharia Financing *) Reclassified
30
Page 31
Total Funding
Maintaining steady cost of funds through funding recomposition amidst high policy rate environment
Funding Composition (IDR Tn) Cost of Fund Trend (% YTD)
364.75 350.35 356.41
328.98 339.24
42.81 43.16
43.27 43.04 6.00%
273.00 279.12 49.85 BI7DRR
5.75% 5.75%
42.73 53.72 5.50%
165.74 143.04
164.86 169.86
164.37
Total
130.34 127.65 CoF
Funding 4.25%
156.20 170.22
114.76 131.12 137.45
99.93 97.75
3.50% 3.50%
Wholesale
2018 2019 2020 2021 2022 1H22 1H23 Funding
6.05%
5.65%
4.10%
Total Funding Composition (%) 7.73% 3.95% 3.90%
7.60%
2.92% 3.08%
Term
15.65% 19.25% 15.15% 12.75% 11.74% 12.29% 12.11% Deposits 7.67% 6.39% 6.23%
6.52%
45.44% 48.48% 40.13% 6.82%
47.74% 49.96% 48.60% 7.78%
45.73% 6.85%
4.33% 5.17% 5.14%
3.13% 3.46%
47.76% CASA
36.60% 35.02% 34.88% 38.65% 42.82% 39.23% 2.88% 2.80% 2.08% 1.36% 1.54% 2.06% 2.10%
1H19
1H20
1H21
1H22
1H23
FY22
1Q23
2018 2019 2020 2021 2022 1H22 1H23
31
Page 32
Deposits Mix
Current account BAU grew massively as transaction banking improves to capture high funding ticket size
Deposits Mix (IDR Bn) Current Account Improvement (IDR Bn)
1H22 1H23 YoY
Deposits (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
Current Account – FLPP 42,416 55,327 30.44%
CASA 99,927 97,754 114,764 131,120 156,200 137,453 170,218 23.84%
Current Account – BAU 47,993 73,350 52.83%
Current Account 58,049 52,116 72,045 79,198 114,007 90,409 128,677 42.33%
Savings Account 41,877 45,638 42,719 51,922 42,195 47,044 41,541 -11.70% 46.92% 45.68% 43.59% 41.05% 43.00%
Time Deposits 130,337 127,647 164,371 164,856 165,736 169,855 143,038 -15.79%
53.08% 54.32% 56.41% 58.95% 57.00%
Total 230,264 225,401 279,135 295,976 321,937 307,309 313,256 1.94%
CASA Ratio 43.40% 43.37% 41.11% 44.30% 48.52% 44.73% 54.34% 1H22 3Q22 FY22 1Q23 1H23
Cost of Fund Trend – Deposits (% YTD)
5.75 Current Account Portfolio
7.69 6.96 6.85
6.49 (BAU)
6.22
5.68 BI7DRR 1%
5.28 5.16 5.17 5.14
4.98 4.79 16%
5.00 4.56 4.33 Term Deposits
4.27 4.14 4.00 SOE Private Co.
3.96 3.74
3.61 3.69 3.45 3.46 3.62 3.58 Total CoF
4.17 3.28 3.13 3.19 3.13 3.13
Deposits 14% Education Government
2.74 2.46
2.33 2.21 2.41 2.35 2.36 2.60 2.16 2.21 Saving Accounts
1.67 1.59 1.59 1.59 62% Retail
Current Account 7%
2.10 2.05 2.06 1.86
1.84 1.89 1.96 1.73 1.63 1.74 1.77
1.22 1.22 1.31 1.35
1H20
1H21
1H22
1H23
FY20
FY19
FY21
FY22
1Q20
3Q20
1Q21
3Q21
1Q22
3Q22
1Q23
32
Page 33
Equity
Strong capital structure dominated by Tier-1 with gradual decreae in Tier-2
Equity and Capital Full Year of First Half of
Growth
(IDR Bn) 2018 2019 2020 2021 2022 2022 2023
Tier – 1 Capital 20,460 21,037 17,626 18,532 22,533 17,643 25,189 42.76% yoy
Tier – 2 Capital 2,868 2,313 7,369 7,175 5,635 6,401 4,812 -24.82% yoy
Capital on Balance Sheet 23,840 23,836 19,988 21,407 25,909 20,985 28,395 35.31% yoy
Total RWA 128,138 134,844 129,250 134,341 139,631 138,478 146,948 6.12% yoy
RWA – Credit Risk 109,507 113,079 105,435 110,020 114,318 110,423 125,720 13.85% yoy
RWA – Market Risk 1,007 802 1,612 2,407 1,373 4,116 3,338 -18.90% yoy
RWA – Operational Risk 17,623 20,963 22,203 21,914 23,939 23,939 17,889 -25.27% yoy
CAR Tier 1 (Tier 1/Total RWA) 15.97% 15.60% 13.64% 13.80% 16.13% 12.74% 17.14% 440 bps
CAR Balance Sheet (B/S/Total RWA) 18.61% 17.68% 15.46% 15.93% 18.56% 15.15% 19.32% 417 bps
CAR BI ((Tier 1+2)/Total RWA) 18.21% 17.32% 19.34% 19.14% 20.17% 17.36% 20.42% 305 bps
Car Tier – 2 2.24% 1.72% 5.70% 5.34% 4.04% 4.62% 3.28% (134) bps
Capital Conservation Buffer 1.88% 2.50% 0.00% 0.00% 2.50% 2.50% 2.50% - bps
Countercyclical Buffer 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% - bps
Capital Surcharge (D-SIB) 0.75% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% - bps
33
Page 34
Profit and Loss
Fee-based income strengthened to offset increasing interest expense as a result of high policy rate environment
PL Summary (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
Interest Income 22,839 25,678 25,167 25,828 25,888 12,677 13,522 6.67%
Interest Expense (12,634) (16,600) (16,045) (12,626) (10,740) (4,940) (7,044) 42.59%
Net Interest Income 10,205 9,078 9,122 13,201 15,148 7,737 6,478 -16.27%
Other Operating Income 2,127 2,113 2,515 2,488 2,234 1,009 1,718 70.26%
Other Operating Expense (Exclude Provision) (6,982) (7,269) (7,053) (9,025) (9,406) 4,734 4,364 -7.83%
Pre Provision Operating Profit (PPOP) 5,350 3,922 4,584 6,664 7,975 4,011 3,832 -4.47%
Provision (1,714) (3,487) (2,262) (3,628) (4,041) 2,068 1,941 -6.18%
Profit From Operations 3,635 436 2,322 3,036 3,934 1,943 1,891 -2.66%
Non Operating Income (Expense) (25) (25) (51) (43) (59) (25) (25) -1.89%
Profit Before Tax 3,610 411 2,271 2,993 3,876 1,917 1,866 -2.67%
Net Profit 2,808 209 1,602 2,376 3,045 1,471 1,474 0.23%
Earning per Share 265 20 151 224 236 139 105
• Increase in interest expense by 42.59% yoy is still lower than policy rate hike by around 50% (from 3.75% - 5.75%).
• Other Operating Expense decreased by 7.83% yoy due to the efficiency throughout last year.
• Provision charge has decreased by 6.18% yoy to become IDR1,941 Bn.
• Net Profit grew by 0.23% yoy, booked at IDR1,47 Tn.
34
Page 35
Profit and Loss Composition (1/2)
Interest from loans and income from Sharia financing steadily grew, dominating the interest income composition
Interest Income
% portion
Interest Income (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
of 1H23
Placement with Bank Indonesia 145 199 374 459 321 148 221 49.65% 1.63%
Placement with other bank 35 27 12 71 10 3 10 262.83% 0.07%
Securities 853 989 1,683 2,577 2,253 1,180 1,107 -6.24% 8.18%
Loan 19,852 22,203 21,173 20,615 20,956 10,272 10,718 4.34% 79.26%
Others - - 3 19 61 2 45 1947.67% 0.33%
Income from Syariah 1,95 2,261 1,922 2,087 2,286 1,072 1,422 32.64% 10.52%
Total 22,839 25,678 25,167 25,828 25,888 12,677 13,522 6.67% 100.00%
Interest Expense
% portion
Interest Expense (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
of 1H23
Bank Indonesia - - - - - - - 0.00% 0.00%
Deposits from Other Banks 459 508 195 52 135 44 89 221.29% 1.26%
Deposits from Non Banks 9,498 12,679 11,755 9,135 7,918 2,877 5,688 64.05% 80.75%
Securities Issued 1,556 1,652 1,552 1,261 880 170 302 -43.36% 4.29%
Fund Borrowings 1,026 1,689 2,518 2,176 1,801 465 946 4.24% 13.43%
Others 94 73 25 1 7 0 19 367.62% 0.26%
Total 12,634 16,600 16,045 12,626 10,740 3,555 7,044 42.59% 100.00%
35
Page 36
Profit and Loss Composition (2/2)
Increasing operating income was driven by gains from treasury’s trading activities and growing fees from transaction banking
Operating Income
% portion
Other Operating Income (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
of 1H23
Marked to market 42 23 106 - - 6 156 2575.45% 9.07%
Gain (Losses) 456 623 665 895 141 55 375 585.49% 21.84%
Reversal on Provisions - - 0 4 23 0.0 - 0.00%
Commissions, Services & Admin Fee 1,044 1,107 996 1,095 1,243 600 641 6.85% 37.31%
Others 543 360 749 493 827 349 546 56.64% 31.78%
Total 2,085 2,114 2,515 2,488 2,234 1,009 1,718 70.26% 100.00%
Operating Expense
% portion
Other Operating Expense (IDR Bn) 2018 2019 2020 2021 2022 1H22 1H23 YoY
of 1H23
Provisions 1,714 3,487 2,262 3,628 4,041 2,070 1,948 -5.89% 30.90%
Salaries & Employee Benefit 2,474 2,435 2,560 2,953 3,311 1,616 1,699 5.16% 26.95%
General Administration 877 875 886 1,530 1,048 820 570 -30.53% 9.04%
Others 395 483 487 911 939 389 165 -57.59% 2.62%
Rent, Service & Maintenance 849 966 778 806 913 397 350 -11.83% 5.55%
Depreciation 264 314 526 556 629 267 333 24.99% 5.29%
Promotion 597 455 268 340 470 178 230 29.61% 3.66%
Collector Fees & Consultant 932 1,036 979 1,053 1,069 541 513 -5.26% 8.14%
Insurance Premium 421 489 496 642 621 322 349 8.14% 5.53%
Training 138 96 42 51 88 26 31 17.69% 0.49%
Research & Development 14 16 8 6 6 2 4 87.25% 0.06%
Other Taxes 10 12 13 13 12 3 4 13.17% 0.06%
Gain (Losses) 11 92 9 11 500 27 109 300.15% 1.73%
Marked to Market 0 0 - 154 10 144 - 0.00%
Total 8,697 10,756 9,315 12,653 13,656 6,803 6,195 -8.93% 100.00%
36
Page 37
Key Financial Ratios
Moderating returns in the midst of asset and capital build-up
ROA1 – Before Tax ROA2 – After Tax
1.34% 1.05%
1.02% 1.03% 0.93% 0.80% 0.79% 0.74%
0.81% 0.64%
0.69% 0.49%
0.13% 0.07%
2018 2019 2020 2021 2022 1H22 1H23 2018 2019 2020 2021 2022 1H22 1H23
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
14.02%
16.42% 16.42% 11.78%
14.89% 11.10% 11.75% 10.38%
13.64%
11.95% 8.02%
10.02%
0.88%
1.00%
2018 2019 2020 2021 2022 1H22 1H23 2018 2019 2020 2021 2022 1H22 1H23
3Calculated based on net profit/average Tier 1 Capital based on Bank Indonesia regulation 4Calculated based on net profit/total stakeholder’s equity
37
Page 38
2023 BTN Guidance
FY 23 1H23
Guidance Actual
Loan Growth 10-11% 7.52%
Deposits Growth 10-11% 1.94%
Net Profit Growth 10-11% 0.23%
Cost of Credit 1.1-1.2% 1.29%
NPL Gross <3% 3.6%
Page 39
Asset Quality & Risk Management
Page 40
Loan Quality
Loan quality slightly impacted by flows from restructured loans but still manageable
2018 2019 2020 2021 2022 1H22 1H23
Collectibility
IDR Bn % IDR Bn % IDR Bn % IDR Bn % IDR Bn % IDR Bn % IDR Bn %
Current 211,289 88.67% 217,344 84.96% 230,456 88.60% 252,244 91.78% 268,077 89.87% 255,775 89.38% 267,083 86.81%
Special Mentioned 20,309 8.52% 26,251 10.26% 18,303 7.04% 12,412 4.52% 20,134 6.75% 20,241 7.07% 29,334 9.53%
Performing Loan (PL) 231,598 97.19% 243,595 95.22% 248,759 95.63% 264,656 96.29% 288,211 96.62% 276,015 96.46% 296,417 96.34%
Substandard 570 0.24% 3,088 1.21% 738 0.28% 222 0.08% 580 0.19% 365 0.13% 939 0.31%
Doubtful 473 0.20% 1,396 0.55% 582 0.22% 484 0.18% 888 0.30% 1,049 0.37% 1,486 0.48%
Loss 5,656 2.37% 7,747 3.03% 10,036 3.86% 9,473 3.45% 8,602 2.88% 8,723 3.05% 8,827 2.87%
Non Performing Loan (NPL) 6,700 2.81% 12,230 4.78% 11,355 4.37% 10,185 3.71% 10,070 3.38% 10,137 3.54% 11,252 3.66%
PL + NPL 238,298 100.00% 255,825 100.00% 260,114 100.00% 274,841 100.00% 298,282 100.00% 286,152 100.00% 307,669 100.00%
NPL Gross 2.81% 4.78% 4.37% 3.70% 3.38% 3.54% 3.66%
NPL Nett 1.83% 2.96% 2.06% 1.20% 1.32% 1.04% 1.75%
NPL Breakdown by Segment Provision Amount & Cost of Credit (COC)
Provision Amount (IDR Tn)
Full-Year of 1st Half of
Loan Type (%) Cost of Credit
2018 2019 2020 2021 2022 2022 2023
Housing Loan 2.49% 4.44% 4.11% 3.52% 3.37% 3.44% 3.72% 1.48%
1.40% 1.42%
Subsidized Mortgage 0.81% 0.98% 1.01% 0.83% 0.93% 1.35%
0.88% 1.64% 1.29%
Non Subsidized Mortgage 2.77% 3.92% 3.58% 2.65% 1.87% 2.32% 2.47%
Other Housing Loan 3.58% 4.71% 4.44% 3.41% 2.88% 3.09% 3.32%
Construction Loan 7.13% 18.71% 19.58% 21.29% 26.20% 0.88%
23.11% 26.27% 0.80% 15.68 15.18 15.66
14.44
Non Housing Loan 5.52% 7.79% 6.70% 5.18% 3.44% 4.29% 3.21% 13.06
Consumer Loan 1.33% 2.81% 2.08% 1.22% 1.08% 1.06% 1.50%
Commercial Loan 8.64% 21.17% 19.25% 15.26% 9.42% 10.88% 9.68% 6.12
Corporate Loan 0.00% 0.00% 0.00% 0.17% 0.64% 0.75% 0.61% 3.30
Total Loan & Financing 2.81% 4.78% 4.37% 3.70% 3.38% 3.54% 3.66%
2018 2019 2020 2021 2022 1H22 1H23
Note: Figures on graph and table include Sharia Financing
40
Page 41
Loan at Risk (LAR)
LAR trended down driven by gradual decrease in Covid restructured loans
Component of LAR (IDR Bn) LAR By Segment Trend
LAR (Covid) LAR (BAU) Total LAR (Inc. Covid) 1H22 3Q22 FY22
34.90%
1Q23 1H23 76,454
34.08%
33.26%
32.88%
32.63%
32.49%
32.33%
88,936
31.91%
75,401
31.55%
31.50%
80,407 72,490
73,519 76,457 75,401 76,454 71,183
72,490 71,183 69,315
32,281
69,315
30,373
38,172
33,129
39,451
39,910
38,533
35,255
41,670
18.41%
18.18%
17.58%
17.51%
16.88%
56,655
10.86%
50,034
9.63%
9.40%
40,390
9.13%
38,285
8.86%
37,002
35,491
34,060
33,957
7.92%
7.79%
7.57%
29,513
7.30%
5.45%
1H21 3Q21 FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
Subsidized Non Commercial Corporate Sharia
Mortgage Subsidized
Mortgage Total LAR
LAR Coverage (IDR Bn)
Coverage to LAR (BAU) Coverage to LAR (Inc. Covid)
LAR Management Strategy
43.95% 43.57% 44.47%
40.80% 40.13% • There has been no Covid restructuring given since November 2022, and
38.38% 38.06% 38.13% 37.57%
the impact is yet still minimal.
• Forming a task force team for loan and financing management to
22.62% 22.00%
19.64% 19.16% 20.13% 19.68%
21.33% evaluate periodical flow of covid restructured loans
14.76%
16.60% • Intensifying communication to borrowers of their payment in 3 months
before the due
• More selective policy to non-covid restructured loan
1H21 3Q21 FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
41
Page 42
Restructured Loans Breakdown
Total restructured loans trended down as Covid restructured loans continued decreasing since 3Q2022
Total Restructured Loan (IDR Tn) Total Restructured Loan by Segment (IDR Bn)
Covid-19 Restructured Outstanding BAU Restructured Loans Total Restructured Loans
1H22 3Q22 FY22 1Q23 1H23
22,328
21,974
74.85 75.24
19,621
72.66 Covid-19 Restructured Loan
19,044
18,728
69.98
17,944
17,791
64.61 64.16
16,241
61.89
15,931
61.38 61.36
15,706
15.15 15.89 18.59 57.83 57.52
19.95 54.31
52.14
11.72
11,882
11,339
11,302
24.22
11,070
25.88 24.89
10,236
25.87
23.77 23.57
20.66 24.80
7,869
6,774
6,672
6,099
58.96
57.52
56.66
5,253
10,810
50.03
49.66
21.10
4,105
3,955
3,898
3,609
3,543
40.39
38.28
37.00
35.49
34.06
33.96
31.48
9,337
29.51
5,808
1,900
18.88
1,657
2.23 Subsidized Mortgage Non Subsidized Mortgage Commercial Corporate Sharia
1Q20 1H20 3Q20 FY20 1Q21 1H21 3Q21 FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
Total Restructured Loan (%) Provision and Non Performing Loan Trend
% Covid-19 Provision Amount (IDR Tn) NPL Amount (IDR Tn) Coverage Ratio
% Non Covid
27.94% 28.64% 28.30% 150.49% 155.65% 145.90%
% Total Restructured Loans 141.82% 146.73% 149.83% 139.12%
25.89% 125.46%
115.02% 115.93% 120.72%
6.06%
24.08% 107.90% 111.36%
5.82%
15.68
6.99%
23.51% 23.15% 105.66% 15.19 15.04 15.47
15.66
14.44 14.65
21.44% 21.36%
7.38%
20.70%
4.60%
13.14 12.80 12.95 13.06 13.17 13.35
19.39% 19.19% 12.43 12.88
11.86
8.81%
17.65% 11.62 11.36
9.34%
11.11 10.91 11.25
10.64 10.60
8.59%
8.79%
10.18 10.14 10.07
8.20%
9.99 10.00
7.97%
7.86%
8.06%
22.58%
22.11%
21.31%
19.48%
18.51%
8.33%
14.70%
13.81%
12.77%
12.65%
12.50%
11.42%
11.33%
9.59%
7.45%
0.88%
1H20
1H21
1H22
1H23
1Q20
3Q20
1Q21
3Q21
1Q22
3Q22
1Q23
FY20
FY21
FY22
1Q20 1H20 3Q20 FY20 1Q21 1H21 3Q21 FY21 1Q22 1H22 3Q22 FY22 1Q23 1H23
42
Page 43
NPL Recovery Strategies in 2023
Several strategies will be carried out by BTN to decrease NPL amount.
Collaboration with IFG: Insurance Claim
Collaboration with Big Buyers for BTN’s Ready-to-Sell Assets
Payment Scheme for Bad Loans
Target 2023
Bulk asset sales for
IDR 1.01 Tn consumer loans IDR 350 Bn
IDR 408 Bn IDR 685 Bn Potentials from on-balance sheet NPLs Schemes :
• Assets sales to multifinance companies in the
Amounts of claim Total Potential
1.78 Tn
form of bonds / Fixed Income Mutual Fund.
disbursed Claims Submitted • Sales to developers in the form of Working
IDR Capital Loans and Working Capital Loan for
• Partnering with IFG for insurance claim payment for any Potentials from off-balance sheet NPLs Renovations bundling
bad loans • Sales to End Users in the form of KPR Maju.
• There is a potential of IDR 277 Bn from the total claims Ready-to-Sell Assets
that have not been disbursed yet Clear legality and marketable
area
Progress Bulk Asset Sales KPR Maju (Ex-NPL & Write-Off Mortgage Recycle Product)
Bad Assets Purchasing
Selling with Bulk Asset Sales scheme –
BTN Retail
Bad Assets
Total asset sales target of around
1 Trilion Rupiah. 1 – 2% higher than subsidized mortgage rate
Mortgage facility for the purchase of landed houses or flats, especially ex-Subsidized
Mortgage unit, where the buying and selling process will use the Power of Attorney to
Sell (SKM) with Minutes of Hand Over as the basis.
43
Page 44
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
10.77% 10.54% 9.74%
Vintage Consumer 7.78% 6.89%
▪ SML from 2022 & 2023 booking 2.83%
2.65% 2.58% 1.79%
recorded at 2.83% and 0.19%. 1.19% 0.96% 0.23% 0.19% 0%
▪ NPL from 2022 & 2023 booking was
0.23% and 0.00%. 2017 2018 2019 2020 2021 2022 2023
Commercial Loan 50.50%
Vintage Commercial 36.97%
29.69%
▪ SML from 2022 & 2023 booking 15.86% 14.94% 15.53%
11.07%
recorded at 0.21% and 0.00%. 6.66% 1.31% 2.11% 0.21% 0.00% 0.00% 0.00%
▪ NPL from 2021 & 2022 booking was
0.00%. 2017 2018 2019 2020 2021 2022 2023
SME 69.11% 64.63%
53.43%
Vintage SME
▪ SML from 2021 & 2022 booking
17.69%
recorded at 1.88% and 0.51%. 10.13% 8.22% 7.62% 5.58% 2.41% 3.27% 1.88%
0.51% 0.32% 0.00%
▪ NPL from 2021 & 2022 booking was
0.32% and 0.00%. 2017 2018 2019 2020 2021 2022 2023
Corporate Loan
23.87%
Vintage Corporate 9.32% 7.46%
▪ SML and NPL was recorded 0.00% after 3.11% 3.09%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
transformation and BPI
2017 2018 2019 2020 2021 2022 2023
SML NPL 44
Page 45
Accrued Interest Update
The formation of accrued interest has begun to see a declining trend as cash basis portion increases
% of Accrued Interest
As of 30 June 2023, total
accrued interest from loans % Cash basis to Accrued Interest Ratio (CAI Ratio)
reached IDR10.23 Tn,
however, IDR7.27 Tn or The comparison between interest income received on cash basis to accrued
71.06% of those accrued basis showed an increase. This will be the trends going forward.
interests are expected to
71.06% recover as it is composed of
loan restructurings which
99.43% Back to pre-pandemic level 99.30%
would decline as payments are
made.
Accrued from restructured loan Accrued from non-restructured loan 96.73%
% of Interest Income with Accrued Basis (Quarterly) 93.55%
24.44% 93.98%
21.91%
20.70% 20.61%
17.14% 90.15%
15.26%
10.32% 9.94% 10.31% 9.78%
8.73% 87.52%
3.64%
1.47% 1.90%
84.94% 86.83%
1H20
FY20
1H21
FY21
1H22
FY22
1H23
1Q20
3Q20
1Q21
3Q21
1Q22
3Q22
1Q23
1H22
1H23
FY19
FY21
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
1Q22
3Q22
1Q23
FY222
As of 30 June 2023, accrued interest recognition is 1.90% of the total
quarterly interest income. A declining trend is seen since the beginning
of 1Q21.
45
Page 46
Sharia Business
Page 47
Sharia Business
Sharia net profit grew by 47.31% yoy along with double-digit growth in financing & deposits
Sharia Net Profit (IDR Bn) Sharia Financings (IDR Tn)
+47.31% yoy
+15.94% yoy
333.58
281.21 33.90
31.62
238.46 29.24
215.77 27.55
190.90 23.61 25.06
185.20 22.04
134.86
2018 2019 2020 2021 2022 1H22 1H23
2018 2019 2020 2021 2022 1H22 1H23
Sharia Asset (IDR Tn) +14.69% yoy Sharia Total Deposits (IDR Tn) +14.56% yoy
45.33 46.27
38.36 40.35
33.03 34.64 34.93
28.40 28.39 29.26 30.49
22.34 21.86 23.83
2018 2019 2020 2021 2022 1H22 1H23 2018 2019 2020 2021 2022 1H22 1H23
47
Page 48
Sharia Business
Sound asset quality with higher coverage
Sharia Coverage Sharia Financing Disbursement (IDR Tn)
2020 2021 2022 2023
150.12%
157.58%
159.15% 2020 2021 2022 2023
133.25%
121.00%
120.48%
106.71%
100.12%
2.4
76.03% 2.15
62.73%
55.55%
53.01%
42.24%
41.01%
1.54
1.21
1.60
2.25
1.92
1.46
1.31
2.46
1.17
1.19
2.23
0.75
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sharia Financing Quality by Segment
Sharia NPF (Gross) & NPF (Net)
SMF NPF (Gross)
Loan Type
6.53% NPF (Gross) NPF (Nett) 2020 2021 2022 1H23 2020 2021 2022 1H23
Housing Loan 7.12% 6.34% 6.73% 8.85% 4.92% 3.85% 3.16% 3.16%
Subsidized Mortgages 7.18% 6.43% 7.06% 9.65% 0.63% 0.53% 0.87% 1.19%
0.74%
4.32% Non-Subsidized 6.41% 6.31% 6.99% 8.67% 1.53% 1.41% 1.30% 1.91%
3.99%
3.31% 3.27% Other Housing 8.23% 9.82% 8.88% 13.02% 2.40% 2.14% 5.54% 0.66%
Construction Loan 9.26% 5.58% 1.63% 1.20% 42.69% 45.08% 38.01% 30.95%
Non-Housing Loan 4.62% 2.12% 0.02% 1.02% 48.50% 14.77% 9.00% 8.68%
0.68% 0.72% Consumer Loan 5.52% 6.13% 3.76% 4.27% 8.29% 3.13% 4.68% 3.81%
0.54%
0.00% Commercial Loan 4.18% 1.09% 0.04% 0.14% 68.18% 17.77% 9.94% 10.00%
2020 2021 2022 1H22 1H23 Total Loan 7.03% 6.16% 6.57% 8.69% 6.53% 4.32% 3.31% 3.27%
48
Page 49
Sustainable Finance
Page 50
BTN’s Sustainable Finance in a Nutshell
Environmental
Sustainability
Energy use per Energy use per unit Green House Gas Paper Use Applied Digital Banking to Reduce Paper Usage:
employee in 2022* office in 2022** Intensity per Employee (Mn Sheet)
(ton CO2/employee) • Letter distribution and disposition through iFlow
82.10
71.41 • Implementation of Smart Branch to maximize digitization by reducing
58.19
24.03 44.19 33.57 the use of paper forms
44.33 27.51 30.47 30.44
14.75 • Mortgage applications through BTN Properti using E-Form
13.68
• Management fees, parking fees, and other housing maintenance fees
management through BTN Smart Residence
2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 *GigaJoule/Employee **GigaJoule/Unit Office
Social Welfare
Subsidized Mortgage Scheme Subsidized Mortgage Disb.
No. of Disbursement Liquidity Facility (FLPP)
Year • IDR Bn
No. of Development Partners (IDR Mn) • Saving-based Financings (BP2BT
Public Housing Savings (KPR Tapera)
Partners (Business Inclusive •
• Public Housing Renovation (KRR Tapera)
24,332
2020 319 18,386 Mortgages
Activities) and 18,410
KPR BTN Mikro 17,064
Disbursed Funds 2021 256 10,994 Housing financing program ranging from
through SME Financing purchasing, renovating, and building
2022 378 23,505 targeted to low-income segment and
2020 2021 2022
informal sector workers.
Governance Sustainability
Severe Negligible Top Low
28.4
Bank BTN’s ESG
78 90.02
Combined ESG Score B+
performance ranked
at 176 out of 1,097 (Most Trusted Company)
ESG Risk Ranking ESG Ranking (%) Banking Services
Compared Within Company as Environmental Social Pillar Governance Top 3 Indonesia PLCs
31,122 Companies assessed by Refinitiv
Pillar Score Score Pillar Score
ASEAN Asset Class
Threshold
C A- B
Page 51
Social and Environmental Values of BTN Mortgage Business
The Sustainable Development Goals (SDGs) have become a framework for BTN in building a portfolio that prioritizes harmony between
economic, social and environmental aspects.
Contribute in reducing housing backlogs Providing homes with affordable
in Indonesia through housing financing electric prices with adjusted rates
KPR BTN Mikro:
program targeted to low-middle income for middle-low income segments. • KPR BTN Mikro is a financing product with a ceiling of IDR
segments 75 Mn for the purchase, renovation, and construction of
houses targeting low-income segment and informal sector
workers.
• This product integrates savings, loans, and insurance on a
micro scale that can be utilized by the community for the
benefit of fulfilling housing-needs in the future.
BTN KPR Micro
BTN’s Subsidized Disbursement (IDR Mio)
Mortgage 2020 2021 2022
2,004 1,557 1,214
Make inclusive, safe, resilient and Ensure availability and sustainable
sustainable community in each subsidized management of clean water and
housing complex. sanitation in subsidized housing.
51
Page 52
Social Welfare at the Heart of BTN’s Business
Housing challenges in Indonesia
2.94% 12.75 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 leads the nation’s BTN maintains the focus in
nation’s housing mortgage business since
~ 5 million units of ~ 90% of BTN’s housing and leading the
needs for more disbursing the first mortgage mortgages have been portfolio is in Indonesian mortgage market
extended by BTN since 1976 housing loans
than 45 years in Indonesia in 1976 with a share of 39%.
Focusing on the BTN is the main contributor in BTN’s mortgages are still
mid-to-low
the national housing dominant in the subsidized ~ 83% market Driving 174 economic sub
program with the largest segment ( 48% of loan share of the national sectors through housing
income group of intake of the Subsidized portfolio) and first time Subsidized Mortgages business.
people Mortgage budget home buyers
Engagement with Partnership with >5000 developer Partners Creating new developers >3000 notary offices have
a wide range of government/ private and most are subsidized residential through BTN’s learning & collaborated with BTN in
housing overseas institutions for developers advisory mortgages disbursement
stakeholders various funding sources
52
Page 53
Contributing more into people’s welfare through subsidized mortgage and
SMEs financing
Sustainable Finance implementation is seen to boost BTN’s value creation, by integrating People, Planet and Profit concepts
Subsidized Mortgage Disbursement
Targeting 80% of Total outstanding of
Government’s FLPP IDR 152 Tn as of 1H
Quotas in 2023 2023
Micro, Small and Medium Enterprises Development Program
KUR Disb. MSE Funding Program (IDR Mn)
2022 2021 2020 2022 2021 2020
599,832 290,949 97,160
35,650 99,833 50,000
53
Page 54
BTN ESG Framework & Strategy Going Forward
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.
Background :
o As concerns related to business continuity arise, stakeholders expect that companies can manage a more environmentally friendly, good governing, and socially responsible
business to achieve more sustainable business activities.
o OJK (Indonesia’s FSA) issued Phase II Sustainable Finance Roadmap (2021-2025) in 2021, which will become the guidance for the financial services industry to develop innovative
and sustainable financing initiatives.
o For the Bank to achieve the necessary balance between profit, planet, and people, BTN needs to develop an ESG framework that is in line with the regulations and aligned with
BTN’s business strategy.
o To manifest the vision of becoming the Best Mortgage Bank in Southeast Asia by 2025, a comprehensive ESG framework is also necessary to be implemented.
I. BTN ESG Project Stages: II. BTN ESG Rating:
o Currently, BTN is conducting an ESG rating assessment partnering with
Phase
Assessment & Gap Analysis (Diagnosis) Sustainalytics for 2024.
1
o In 2023, BTN has earned a rating of “Medium Risk”, improving from previously
”High Risk” in 2022, indicating a lower climate risk by BTN.
Phase Environmental, Social, and Governance (ESG) Strategy
2 and Framework
2023
Phase
Environmental, Social, and Governance (ESG) Roadmap
3
54
Page 55
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 Mar 2023
As of February 2023 Total Proceeds of IDR 1.65 Tn
through public portion of rights issue
Outlook : Stable Newly Issued Public Shares : PEFINDO i-Grade
National Short-Term Rating : F1+ (idn) 1,377,777,765
National Long-Term Rating : AA+ (idn) LQ45
Senior Unsecured : AA+ IDX BUMN20
IDX30
IDX80
IDX Small-Mid Cap (IDX SMC) Composite
As of December 2022 IDX Small-Mid Cap (IDX SMC) Liquid
Kompas100
Outlook : Stable Infobank15
Counterparty Risk Rating : Baa2/P-2
Bank Deposits
Baseline Credit Assessment
: Baa2/P-2
: ba1 Oversubscribed by 1,6x IDX ESG Leaders
MSCI Indonesia Small Cap
Adj Baseline Credit Assessment : ba1 ESG Sector Leaders IDX Kehati
Counterparty Risk Assessment : Baa2 (cr)/P-2(cr)
Subordinate : Ba3 (hyb) ESG Quality 45 IDX Kehati
IDX Value30
Investor33
IDXFINANCE
As of June 2023 SRI-KEHATI
Tempo – IDX Financials52
Outlook : Stable
Corporate Rating : F1+ (idn) BTN’s Rights Issue was positively welcomed by
National Long-Term Rating : AA+ (idn) investors
Senior Unsecured : AA+
55
Page 56
Appendix
Page 57
BTN’s Network and Distribution
Regional I (West Java) Regional II (Jakarta Area) Regional III (East Java)
Regional Office 1 Regional Office 1 Regional Office 1
Branch Offices 15 Branch Offices 13 Branch Offices 15
Sub-Branch Offices 123 Sub-Branch Offices 133 Sub-Branch Offices 83
Functional Offices 0 Functional Offices 0 Functional Offices 0
Sharia Branch Offices 6 Sharia Branch Offices 4 Sharia Branch Offices 3 National
Sharia Sub-Branch Offices 15 Sharia Sub-Branch Offices 10 Sharia Sub-Branch Offices 12 2022
Sharia Cash Offices 0 Sharia Cash Offices 0 Sharia Cash Offices 1 Regional Office 6
Sharia Payment Points 1 Sharia Payment Points 1 Sharia Payment Points 1 Branch Offices 80
Priority Outlets 9 Priority Outlets 17 Priority Outlets 8 Sub-Branch Offices 537
ATM & CRM 517 ATM 483 ATM 334 Functional Offices 3
Sharia Branch Offices 30
Regional IV (Sumatera) Regional V (Sulawesi) Regional VI (Central Java & DIY) Sharia Sub-Branch Offices 69
Regional Office 1 Regional Office 1 Regional Office 1 Sharia Cash Offices 5
Branch Offices 11 Branch Offices 18 Branch Offices 8 Sharia Payment Points 6
Sub-Branch Offices 75 Sub-Branch Offices 69 Sub-Branch Offices 56 Outlets 736
Functional Offices 1 Functional Offices 0 Functional Offices 2 Priority Outlets 57
Sharia Branch Offices 9 Sharia Branch Offices 4 Sharia Branch Offices 4 ATM 2,117
Sharia Sub-Branch Offices 14 Sharia Sub-Branch Offices 6 Sharia Sub-Branch Offices 12
Sharia Cash Offices 3 Sharia Cash Offices 0 Sharia Cash Offices 1
Sharia Payment Points 0 Sharia Payment Points 2 Sharia Payment Points 1
Priority Outlets 8 Priority Outlets 10 Priority Outlets 5
ATM 293 ATM 284 ATM 206
57
Page 58
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
58
Page 59
Board of Directors
Nixon L. P. Napitupulu Oni Febriarto
President Director Vice President Director
Served as Vice President Director and Director of Finance
Planning and Treasury at PT Bank Tabungan Negara (Persero) Served as Vice President Director at Perum Perumnas
Tbk
Hirwandi Gafar Jasmin
Director of Consumer Director of Distribution & Funding
Served as Subsidized Mortgage Lending Division Head and Business Served as SEVP of Consumer & Transaction and Regional CEO IV/JKT 2 at PT
Development of Subsidized Mortgage Department Head at PT Bank Bank Mandiri (Persero) Tbk
Tabungan Negara (Persero) Tbk
Nofry Rony Poetra Eko Waluyo
Director of Finance Director of Human Capital, Compliance, and Legal
Served as Treasury Division Head and Head of Regional Office I at PT Bank Served as Human Capital Management Division Head and Corporate
Tabungan Negara (Persero) Tbk Secretary Division Head at PT Bank Tabungan Negara (Persero) Tbk
Andi Nirwoto Elisabeth Novie Riswanti
Director of IT & Digital Director of Assets Management
Served as General Manager of Operational Information Technology, and Served as Asset Management Division Head and Small and Medium Lending
General Manager Solution and IT Security Division at PT Bank Negara Division Head at PT Bank Tabungan Negara (Persero) Tbk
Indonesia (Persero) Tbk
Setiyo Wibowo Hakim Putratama
Director of Risk Management Director of Institutional Banking
Served as Consumer Credit Risk & Analytics Group Head and Credit Portfolio Served as Head of International and Transaction Banking at PT Bank
Risk Group Head at PT Bank Mandiri (Persero) Tbk Pembangunan Daerah Jawa Barat & Banten Tbk
59
Page 60
BTN Shares Information
BBTN Price Movement Volume (Lots)
Bank BTN Investor Profile
Close Price
BBTN stock investors increased by 42% yoy, driven by an
increase in Retail Investors, indicating new investors
interest in BBTN shares.
30-06-21
1,370 30-06-23
1,320
Local Investor
Institution Retail
Number of
investor 55,232
(1H23) Proportion Proportion
to public 43.70 31.08
Sep-21
Sep-22
Jul-21
Dec-21
Jan-22
Jul-22
Dec-22
Jan-23
Oct-21
Mar-22
Apr-22
Apr-23
Jun-21
Oct-22
Mar-23
Jun-22
May-22
May-23
Aug-21
Nov-21
Nov-22
Feb-22
Aug-22
Feb-23
to public
(%) (%)
44,246
(1H22) 1H22 468 1H22 43,778
1H23 494 1H23 54,738
BBTN Stock Performance Indicator
Shares 14.03
Book Value per 1,968 Outstanding
Share (IDR) 10.59 Foreign Investor
2,026
… (mn shares)
Institution Retail
Number of
Price to Earning 7.19
Market 18.53 investor 264
Proportion Proportion
(PER) Capitalization (1H23)
to public 25.13 to public 0.09
4.38 14.51 (%)
(IDR Tn) 252
(%)
(1H22) 1H22 184 68
1H22
Price to Book 0.84
… 1H23 1H23 197 67
1H23
Value (PBV)
…
0.50 1H22
60
Page 61
BTN Achievement
With sustainable performance improvements, BTN received various awards and appreciations
Governance Implementation Mortgage Top Brand Sustainability Performance Digital Bank
Indonesia
Excellence GCG
Awards 2023
Indonesia
Excellence Good
Corporate
Governance Ethics Indonesia’s Home Grown Consumer Digital Brand Award 2023
in Providing End- Brands Award 2023
to-End Mortgage
The Best Sharia Business Unit -
In Home Category
Solutions Conventional Bank
Best Asia’s Indonesia TOP
Transformation Financial Industry
Bank 2022
Executives 2022 Digital Technology &
Nixon L.P. Napitupulu Innovation Award 2022
The Best Transformation Leader
The Best IT Human Capital
Development
Syariah Insight 2023 - Top Sharia
Business Unit
in KBMI 3 Category
Corporate Governance Perception Digital
Index (CGPI) survey 2022 Innovation
“Most Trusted Company” Award 2022
11th Anugerah BUMN 2022 TOP BUMN Award 2022 The Most Innovation Conventional
Terbaik II, Kategori Tata The Best State Owned Enterprise in Bank for The Integration of Digital
Kelola Perusahaan CGC The Best Mortgage Loan Conventional
2022 by Bisnis Indonesia Product and Services
Perusahaan Tbk Bank (KBMI) 3
61
Page 62
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 0 people and organisations named in the text · linked when the evidence is strong
The name pass has not read this document yet.
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.