BBTN recorded an Interest Income of IDR22.37 trillion, growing 7.4% YoY in 9M24. Meanwhile, Interest Expense increased 26.0% YoY to IDR13.47 trillion, with an Operating Profit Before Provision (PPOP) of IDR4.02 trillion (-32% YoY) in 9M24.

BBTN’s loan & financing grew 11.9% YoY to IDR356 trillion in 9M24. This growth was supported by housing loan growth, which rose 10.4% YoY in 9M24.

The current Account Saving Account (CASA) ratio grew 150 bps YoY in 9M24. BBTN recorded total Third Party Funds of IDR371 trillion (+14.5% YoY) in 9M24.

BBTN will continue its efforts to develop high-yield loans in FY25F. BBTN targets 15 Sales Centers in FY25, compared to 6 Sales Centers in 9M24.

Using the Discounted Cash Flow method with a Required Return of 10.67% and Terminal growth of 7.59%, we estimate BBTN’s fair value at 1,460 (5.60x expected P/E). Considering BBTN’s fair price and relative valuation, below its 0.73 5-year average P/B, we maintain a buy rating for with a potential upside of 20.91%.

By PHINTRACO SEKURITAS | Research
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