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BTN's net profit fell by 53% YoY due to higher provision expenses

11 November 2019 14:04

JAKARTA. The net profit obtained by PT Bank Tabungan Negara (Persero) Tbk (BBTN) during the period of January-September (9M) 2019 is 53% lower than its net profit in 9M 2018. 

Tjandra Lienandjaja, Deputy Head of Equity Research at Mandiri Sekuritas, said the decline was caused by low margins and higher provision expenses. This state-owned bank even lost Rp 543 billion in September 2019.

"Thus, the company's performance will only reach 64% of the consensus until the end of 2019 and is still below the expectations of Mandiri Sekuritas," Lienandjaja said in a written statement on Monday (11/11) today.

In 9M 2019, BBTN's provision expenses rose by 113% YoY to Rp 2.02 trillion. Meanwhile, Net Interest Margin (NIM) in this period fell to the level of 3.3% compared to 4.1% in 9M 2018. BBTN's cost of credit also rose to the level of 1.1% in 9M 2019, from 0.5% in 9M 2018. (KR/AR)

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