JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BBTN) or BTN will distribute dividends of Rp 561.58 billion or Rp 53.029 per share for the 2018 fiscal year. The amount is 20% of the company’s 2018 net profit.
In 2018 BTN recorded net profit increase of 5.96% year on year (yoy) to Rp 3.20 trillion. The growth was supported by loan disbursement which rose 19.48% yoy to Rp 237.75 trillion and third-party funds which hiked 9.59% yoy to Rp 211.46 trillion.
“Why only 20%, unlike other banks? As we have explained, we need to strengthen our capital this year in order to prepare for Statement of Financial Accounting Standards 21, and we also need capital for our future expansion,” said BTN Finance Director Nixon L. Napitupulu in a press conference after the company’s AGM at the BTN Tower, Central Jakarta on Friday (17/5).
Mr Napitupulu added that the remaining Rp 2.24 trillion or 80% of the company’s net profit is used as retained earnings, which will be allocated for credit expansion, capital strengthening, and business development.
For 2019, BTN targets loan and financing growth of 12%-14% and increase of third-party funds in the same range. “We will focus on pursuing low cost funds to increase the portion of CASA (Current Account Savings Account),” said BTN CEO Maryono in a press release received by IDNFinancials.com.
“Our strategies include targeting captive customers by using mortgage products as entry points, embracing millennial customers, and developing digital banking features to increase transaction-based CASA.” (MS)