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BTPN ready to 'cool down', aims for 17% growth
Medium-sized lender Bank Tabungan Pensiunan Nasional (BTPN) says it is prepared to âcool downâ its business expectations in 2014
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Medium-sized lender Bank Tabungan Pensiunan Nasional (BTPN) says it is prepared to 'cool down' its business expectations in 2014.
According to BTPN finance director Arief Harris Tandjung, the economy has not fully bounced back from the volatility it suffered last year.
'We must still be vigilant for the next three to four quarters. This is the time for the banking industry, including us, to cool down for a while. Our growth will not be in the 20 percent range as in previous years,' he said on Tuesday.
The bank, which focuses on disbursing loans to pensioners and micro entrepreneurs, sets its business growth target at 15 to 17 percent, in line with what Bank Indonesia (BI) and the Financial Services Authority (OJK) have set.
With such a target, BTPN's outstanding loans are estimated to reach between Rp 53.02 trillion (US$4.48 billion) and Rp 53.94 trillion by year-end. Loans to pensioners would remain its biggest segment, making up for more than 60 percent of the expected figure, Arief said.
BTPN compliance director and corporate secretary Anika Faisal said it would open around 50 new loan outlets this year to help reach the target. 'We want to focus on expanding the business in Sumatra,' she said.
In funding, the bank hopes to see its customers' deposits ' composed of savings, demand deposits and time deposits ' to grow at the same rate as its loans.
The deposits are expected to amount to at least Rp 60.02 trillion in 2014. As of now, time deposits account for almost 90 percent of total customer deposits.
Anika said BTPN had no plan yet to expand the business to include priority-segment clients. 'Our line of business will remain the same, even after the SMBC [Sumitomo Mitsui Banking Corporation] controls a 40 percent stake in the bank,' she said.
As previously reported, Japan's SMBC is looking to acquire 40 percent ownership in BTPN. It holds 24.3 percent and is now waiting for the OJK to approve its acquisition plan.
Meanwhile, its full 2013 financial report reveals that the private lender bagged Rp 2.13 trillion in net profits, a 7.7 percent rise year-on-year. The bottom line growth was much lower compared to 2012 when BTPN posted a 41 percent increase.
According to Arief, higher tax requirements played a significant role in the net profits result.
'Our pre-tax profits actually rose 15.4 percent to Rp 2.87 trillion. However, our tax obligation increased to 25 percent from the previous 20 percent as a result of lower public ownership,' he explained.
After the 24.3 percent acquisition by the SMBC last year, the public now holds a 34.7 percent stake, while TPG Nusantara S.á.r.l. controls 41 percent. With a lower-than-40-percent public ownership, BTPN's tax has now increased.
The latest financial report also shows that BTPN managed to increase its outstanding loans by 18.7 percent to Rp 46.1 trillion and its deposits by 15.8 percent to Rp 52.19 trillion.
Similar to other lenders, BTPN also suffered from a lower net interest margin (NIM), caused by higher BI rates and costs of funds. Its NIM stood at 12.7 percent, down from 13.1 percent recorded in 2012.
