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Jakarta Post

BTN upbeat over prospect of exceeding profit target

  • Riska Rahman

    Jakarta

Jakarta   /   Fri, August 7 2020   /  01:00 am
Keep building: Laborers work on a housing development for middle-income consumers funded by Bank Tabungan Negara Tbk (BTN) in Serpong, South Tangerang. (Antara/Audy Alwi )

State-owned Bank Tabungan Negara (BTN) is optimistic that it will exceed its net profit target this year as the COVID-19 pandemic lowers its cost of funding. President director Pahala N. Mansury expressed his optimism on Monday that the publicly listed bank could book more profit than its initial projection of Rp 1.1 trillion (US$75.36 million) by the end of this year, supported by easing liquidity competition. “There is plenty of liquidity in the market right now as interest rates decline and loan demand slows, making competition for liquidity less fierce and helping us to improve our liquidity,” he said, adding that the bank’s cost of funding had decreased by 80 basis points during the first six months of the year from the same period last year. Bank Indonesia (BI) has cut its benchmark interest rate four times by 25 basis points (bps) each so far this year i...