BTN's Profits Soar to Rp 1.1 Trillion, The Secret is Cutting Funding Costs

PT Bank Tabungan Negara (Persero) Tbk or BTN recorded a net profit of Rp 1.1 trillion in the first quarter of 2026, a 22.6 per cent jump from Rp 904 billion in the same period the previous year. This double-digit growth was propelled by improvements in the fundamentals of its funding cost structure and measured credit expansion. One of the most prominent indicators of the bank’s health is the decline in the cost of funds to 3.0 per cent, a significant drop from 4.0 per cent in the first quarter of 2025. This reduction in interest expenses stems from the successful transformation of the retail segment, which increased the proportion of low-cost funds or Current Account and Savings Account (CASA). BTN’s President Director, Nixon LP Napitupulu, emphasised that this achievement validates the company’s transformation strategy, supported by the state-owned enterprises management body and Danantara Indonesia. “This positive performance is inseparable from the support of Danantara Indonesia and the SOE Management Body, which encourages BTN to pursue its noble purpose as the engine of national housing finance, while still delivering optimal returns to shareholders,” Nixon stated during the performance briefing in Jakarta on Wednesday (15/4/2026). Historically, since 1976 up to April 2026, BTN has disbursed mortgages for 6 million housing units with a cumulative value of Rp 530 trillion. This figure is not merely a banking statistic but a representation of housing access for around 24 million Indonesian citizens. The housing sector has a strategic multiplier effect on the domestic economy due to its linkages with 185 other industrial sub-sectors. Nixon detailed several crucial points regarding this impact, noting that the housing industry absorbs around 12.5 million workers across related sectors. Every additional capital injection of Rp 1 trillion in this sector can create 8,000 new jobs. “The government’s focus on prioritising the housing sector as a national priority is a crucial foundation for improving the quality of life for the community. For BTN, this strengthens our role as a strategic partner to the government in meeting the need for decent housing,” Nixon added. As of March 2026, BTN’s total credit disbursements grew 10.3 per cent to Rp 400.63 trillion. The subsidised mortgage segment remains the main contributor at Rp 193.55 trillion (up 7.7 per cent), followed by non-subsidised mortgages at Rp 112.56 trillion (up 5.4 per cent).