BTN's Financial Performance Shows Strong Recovery Signals

Improving Financial Metrics

PT Bank Tabungan Negara (Persero) Tbk. (BBTN) is demonstrating significant improvement in its financial performance throughout 2025. The bank's net interest income (NII) grew by 44.49% year-on-year (YoY) to reach Rp12.61 trillion by the end of Q3 2025. This substantial growth reflects the bank's successful efforts in enhancing asset yields while effectively managing funding costs, thereby positively impacting profitability.

Strategic Initiatives and Government Support

Analysts from Binaartha Sekuritas, Avanza Bagus Aditya and Achmadi Hangradhika, noted that BTN is entering a phase of healthier and more sustainable growth. The bank's strategic decision to spin off BTN Syariah is seen as a positive move, opening up new growth opportunities, particularly in the sharia financing segment which holds significant long-term potential.

Positive Outlook from Analysts

Binaartha Sekuritas maintains a buy recommendation for BTN shares with a target price of Rp1,345, indicating a potential upside of approximately 13.5% from current levels. The positive outlook is supported by BTN's improving financial fundamentals, including a 10.58% YoY increase in net profit to Rp2.30 trillion through September 2025. This improvement was driven by the growth in net interest income, which in turn boosted the net interest margin (NIM) by 100 basis points YoY to 3.9% in Q3 2025.

Additional Growth Drivers

Mandiri Sekuritas analyst Kresna Hutabarat highlighted that the government's strong commitment to the housing sector will be a key driver of BTN's growth in 2026. The government has allocated a quota of 350,000 units under the FLPP (Fasilitas Likuiditas Pembiayaan Perumahan) program and continues to support the KPP (Kredit Program Perumahan) initiative. These programs are expected to significantly boost BTN's credit growth in the coming year.

Analyst Consensus

Both Binaartha Sekuritas and Mandiri Sekuritas share a positive view on BTN's prospects. Mandiri Sekuritas noted that BTN maintained a NIM of 4.0% throughout the first ten months of 2025, a significant improvement from 2.9% in the same period last year. This improvement was supported by higher asset yields and a reduction in the cost of funds to 4.2%.