BBTN booked an interest income of IDR29.55 trillion, growing by 4.5% YoY in FY24. Meanwhile, interest expense increased by 21.9% YoY to IDR17.85 trillion, with a pre-provision operating profit (PPOP) of IDR5.87 trillion (-28.7% YoY) in FY24.

Housing Loans continue to support BBTN’s loan growth. BBTN’s loans & financing grew 7.3% YoY to IDR358 trillion in FY24.

BBTN continues to strive to increase fee-based income by launching Bale by BTN in February 2025 to increase BBTN’s transactional banking. Management targets the number of Bale by BTN users to grow 62% YoY in FY25F compared to previous BTN mobile banking users.

BBTN will continue its efforts to develop high-yield loans in FY25F. BBTN targets 15 Sales Centers in FY25, compared to 9 Sales Centers in FY24. management targets the contribution to non-subsidized KPR to increase >20% in FY25.

With BBTN’s performance supported by various stimuli for the property sector (three million homes program, property tax elimination) and a potentially lower BI rate in FY25F, we estimate that BBTN’s net profit can grow by around 20% YoY in FY25F.

Using the Discounted Cash Flow method with a Required Return of 9.15% and Terminal Growth of 7.56%, we estimate BBTN’s fair value at 1,250 (4.5x expected P/E). Considering BBTN’s fair price and relative valuation below -1 standard deviation of 0.51 of its 5-year P/E, we maintain our buy rating for BBTN with a lower fair value and potential upside of 26.26%

By PHINTRACO SEKURITAS | Research
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