STOCK MARKET - JAKARTA. The sale of problematic credit assets has become one of the pillars of PT Bank Tabungan Negara Tbk (BBTN)'s performance throughout 2023. This is reflected in the increased recovery revenue during that period.
As of December 2023, BTN's recovery revenue increased significantly by 137.7% to IDR 882 billion, or up from IDR 371 billion in the same period last year.
Bank BTN's Risk Management Director Setiyo Wibowo stated that last year's asset sales were indeed better due to the payment of claims from Jiwasraya insurance and high demand for property, especially since BTN's credit restructuring related to COVID-19 has created a special unit to mitigate asset sales, and the results have been quite productive.
"The biggest contribution is in the form of consumers, so subsidized and non-subsidized mortgages. In the commercial sector, there are also several accounts that we settled this year," he said in Jakarta (12/2).
He explained that the consumer segment is indeed much easier to sell compared to the commercial segment because it has a much higher risk.
But even so, there are already interested investors, so it is hoped that this can reduce risky credits this year.
"If it's commercial, especially high risk like apartments and not 100% finished, it's indeed difficult. But there are already interested parties, around the Jakarta and Surabaya areas," he continued.
Meanwhile, this year Setiyo hopes that recovery revenue will not be much different from last year considering the outstanding Jiwasraya claim of around IDR 200 billion will be paid this year.
On the other hand, for write-offs, this bank, which is active in home lending, will allocate a maximum of IDR 3 trillion this year. "We hope this year's recovery will be around IDR 500 billion - IDR 800 billion," he concluded.