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Jakarta Post

BTN profits drop more than 90% in 2019

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Tue, February 18 2020   /  01:50 am

Publicly listed state lender Bank Tabungan Negara's (BTN) profits plummeted by more than 90 percent last year as nonperforming loans and costs of funds rose amid a challenging business climate for the banking industry.The mortgage-focused bank booked Rp 209.26 billion (US$15.3 million) in profits in 2019, down by 92.5 percent year-on-year, BTN president director Pahala N. Mansury said on Monday. The sharp decrease in profits was caused by BTN's decision to comply with new accounting standards that require loan loss provisions to cover both good and bad loans, he said.As a result of the implementation of Accounting Standard 71, which took effect this year, BTN’s loan loss provisions almost doubled, jumping by 85.4 percent to Rp 6.16 trillion in 2019, from Rp 3.29 trillion in 2018.Pahala also blamed increasing costs of funds for the bank’s nosediving profits last year.“Higher costs o...