BTN Forgoes Dividend Payout, Allocates Rp3.5 Trillion Profit for Credit Expansion

JAKARTA, KOMPAS.com - PT Bank Tabungan Negara (Persero) Tbk has decided not to distribute dividends from its 2025 fiscal year net profit. This decision was taken at the Annual General Meeting of Shareholders held on Thursday (23/4/2026). Shareholders agreed to allocate the entire net profit of Rp3.5 trillion as retained earnings. These funds will be used to support credit expansion. BTN President Director Nixon LP Napitupulu stated that the dividend payout ratio has been set at 0 per cent. This step is taken to strengthen capitalisation in line with expansion plans that exceed the company’s Work Plan and Budget. The decision is related to plans to acquire a third-party credit portfolio. The transaction value is estimated to exceed 20 per cent of the company’s equity, thus requiring additional capital. “We had also planned to issue sub-debt or additional tier 1 capital. But the timing is not feasible, and using that would incur interest costs,” Nixon said during a press conference. He emphasised that forgoing dividend distribution was chosen to maintain efficiency and strengthen expansion capacity. “In the end, it was agreed that we will not pay dividends or have a 0 per cent dividend payout this year, because the capital is needed for purchasing the aforementioned portfolio. This way, we no longer need to issue debt instruments,” he explained. BTN targets credit and financing growth in 2026 to be in the range of 8 per cent to 10 per cent. The focus remains on the housing segment, both subsidised and non-subsidised, as well as strengthening the financing ecosystem. The AGM also approved granting authority to the Board of Commissioners to approve the credit portfolio acquisition plan. Approval will still follow applicable regulations. “The yield is better than BTN’s current yield, that’s why we’re buying it. Also, the NPL is lower than BTN’s current NPL,” he said.