JAKARTA – PT Bank Tabungan Negara Tbk (BBTN) reveals its moderate target on credit distribution growth in 2024, at 10-11%. In fact, at the end of June 2024, BBTN had reported credit growth of 14.4% year-on-year (yoy).

According to Nixon LP Napitupulu, President Director of BBTN, this moderate target is set following tight liquidity of the bank, a consequence of Bank Indonesia (BI) reference rate that remains high at 6.25%.

“Actually, we can score 15-16% growth,” added Napitupulu during Q&A session at Public Expose Live of BBTN today (27/8). “My projection is at the end of the year, it could reach 12%,” he continued.

Napitupulu then wishes for BI-rate cut, considering how the Fed had signalled the start of its rate-cutting cycle in September, and will continue until next year.

“If the liquidity remains tight, the credit expansion must be curbed down in prudence,” said Napitupulu. As of June 2024, total credit distributed by BBTN reportedly reached IDR 310.65 trillion.

In addition to credit growth target revision, BBTN also sets a realistic target for profit growth. Its profit target is significantly lowered from 10-11% yoy to approximately 1% from the number recorded in 2023.

“Due to increased cost of fund, we will maintain the profit not far from last year,” Napitupulu added. It then affects the projection of dividend payout ratio of BBTN, which is said to remain stagnant, or stable at 20-25%. (ZH)