BTN records decline in mortgage NPL ratio to 2.8 per cent in Q1 2026

PT Bank Tabungan Negara (Persero) Tbk (BTN) has recorded a decrease in the Non-Performing Loan (NPL) ratio for its mortgage (KPR) segment, falling from 3.0 per cent in the first quarter of 2025 to 2.8 per cent in the first quarter of 2026.

BTN’s Director of Risk Management, Setiyo Wibowo, stated that the quality of BTN’s consumer credit remains generally controlled and continues to improve amidst credit growth and economic dynamics. “BTN is not only focused on credit growth but also ensures that the quality of such growth is maintained optimally,” Wibowo said in an official statement released in Jakarta.

He further noted that as of the end of March 2026, the overall NPL ratio was successfully suppressed to 3.1 per cent in Q1 2026, an improvement from the 3.3 per cent recorded during the same period the previous year. Wibowo attributed this improvement in financing quality to various transformation initiatives implemented by the company in recent years.

These improvement efforts include strengthening the underwriting process, enhancing verification quality, digitising credit processes, utilising data analytics, and strengthening post-disbursement portfolio management. Another key transformation is the development of the ‘BTN Loan Factory’, an integrated credit processing centre that consolidates consumer credit processes nationwide through the use of digital technology, data analytics, decision engines, and workflow automation.

Wibowo stated that these transformations have strengthened the standardisation of credit processes, improved the quality of verification and analysis, and accelerated credit decision-making. With increasingly digitised and centralised processes, the bank can maintain the quality of new credit more consistently while enhancing service efficiency for the public.

Capital market analyst from Bahana Sekuritas, Razqi M. Kurniawan, assessed that the improvement in BTN’s financing performance in the first quarter of this year is a significant achievement of the loan factory operations. In a site visit study published last April, he revealed that credit quality based on the year of booking shows an increasingly healthy trend. Credit booked in recent years demonstrates a much more controlled risk level compared to older portfolios, thereby strengthening the foundation of the company’s asset quality moving forward.