Accelerating Credit Strengthening, BTN Bolsters Capital

The Annual General Meeting of Shareholders (AGMS) for the 2025 fiscal year of PT Bank Tabungan Negara (Persero) Tbk (BTN) has resolved to strengthen the company’s capital to facilitate credit expansion.

In the AGMS held on Thursday, 23 April 2026, this capital strengthening aligns with the shareholders’ decision to allocate BTN’s 2025 net profit of Rp 3.5 trillion as retained earnings to support future credit expansion.

BTN’s President Director, Nixon LP Napitupulu, emphasised during a press conference that for profit utilisation, the AGMS decided on a dividend payout ratio of 0%, considering the need to support credit expansion exceeding the company’s Work Plan and Budget (RKAP), thus using the profit to bolster capitalisation in 2026.

This decision is underpinned by plans to acquire a credit portfolio that has been in process for a considerable period. The portfolio includes both productive and consumer credit with a transaction value exceeding 20% of the company’s equity, necessitating capital strengthening.

Nixon explained that the company had previously considered various funding options, including debt issuance, but deemed them less efficient.

“We had also planned to issue sub-debt or additional tier 1 capital. But the timing was not feasible, and it would incur interest costs,” Nixon stated in Jakarta.

He affirmed that the decision not to distribute dividends was taken to maintain efficiency while strengthening expansion capacity. “Ultimately, it was agreed that we would not pay dividends or have a 0% dividend payout this year, as the capital is needed for purchasing the aforementioned portfolio. This way, we no longer need to issue debt instruments,” he clarified.

In line with this, BTN targets credit and financing growth of 8-10% in 2026, while continuing to focus on the housing segment, both subsidised and non-subsidised, as well as strengthening the housing finance ecosystem.

Regarding credit expansion, the AGMS approved granting authority to the Board of Commissioners, subject to prior approval in accordance with applicable provisions, to approve the plan to acquire the credit portfolio from third parties.

Nixon assessed that acquiring the credit portfolio offers a better return profile and asset quality compared to the company’s existing portfolio, thereby adding value to the company. “The yield is better than BTN’s current yield, which is why we’re buying it. Additionally, the NPL is lower than BTN’s current NPL.”