PT Bank Tabungan Negara (Persero) Tbk recorded a net profit of 665.71 percent growth YoY in the fourth quarter of 2020.

Despite pandemic pressure, Bank BTN successfully achieved a net profit of Rp1.60 trillion in the fourth quarter of 2020, soaring from the position of Rp.209 billion in the same period the previous year.

Plt. President Director of Bank BTN, Nixon LP Napitupulu, said that the jump in net profit was supported by the company's five main strategies that the lender held throughout 2020. The housing sector has also become a pillar of BTN's coffers' fertility because it moves positively amid the correction of economic growth due to the pandemic.

"This strategy proves that we can not only improve business performance but also survive the pressure caused by the pandemic. This year, we are optimistic that with this strategy and the potential in the property sector, Bank BTN will score a positive net profit, "he said at the Performance Exposure Media Brief as of December 31, 2020, in Jakarta, on Monday (15/2).

The company's five strategies include maximizing good corporate governance (GCG), centralizing business processes, and strengthening capital and funding. Also, the company is improving credit quality and boosting efficiency.

In the issuer's financial statements for BBTN shares, the company's net profit came mainly from interest income of Rp25.16 trillion in the fourth quarter of 2020. The lender booked a higher net interest income, thanks to loan distribution, which continued to grow despite the pandemic's pressure.

Subsidized housing loans (KPR) with a growth of 8.63 percent YoY to Rp120.72 trillion in the fourth quarter of 2020 are the main pillars of credit growth at BTN. The lender extended the housing loan for the subsidized KPR  increase by 2.29 percent YoY to Rp234.78 trillion in the fourth quarter of 2020.

In the non-housing loan segment, BBTN had distributed loans worth Rp25.32 trillion. This disbursement performance was supported by corporate credit and consumer credit, which increased respectively by 77.81 percent and 4.55 percent to Rp11.94 trillion and Rp5.11 trillion as of December 31, 2020.

Bank BTN loan was recorded with this total distribution at Rp260.11 trillion, up 1.68 percent YoY in the fourth quarter in 2020 from Rp255.82 trillion in the corresponding period in 2019

The quality of bank loans also recorded an improving trend. As of December 31, 2020, Bank BTN's net Non-Performing Loan (NPL) was recorded at 2.06 percent, down 90 bps from 2.96 percent in the same period the previous year.

Meanwhile, Bank BTN's coverage ratio has also increased more than two times in anticipation of decreased credit quality due to the COVID-19 pandemic. In the fourth quarter last year, Bank BTN recorded a coverage ratio of 115.02 percent, or an increase from 50.01 percent in the same period in 2019.

BBTN's Third Party Funds (DPK) strengthened with the improved cost of funds (CoF) on the funding side. The housing finance specialist bank DPK experienced significant growth of 23.84 percent YoY from Rp225.4 trillion in the fourth quarter of 2019 to Rp279.13 trillion in the same period last year.