PT Bank BTPN Syariah (BTPS) Q4 2023 earnings summary

Executive summary

• FY23 net margin income rose 5% YoY to IDR 5,260bn, while profit after tax fell 39% to IDR 1,081bn amid higher financing losses and provisions.

• Year-end assets reached IDR 21,435bn, up 1% YoY; gross financing was IDR 11,388bn, down 1%. Service reached ~7m customers, including ~4.21m active customers.

Financial highlights

• Margin income was IDR 5,746bn, up 7% YoY; margin expense rose 41% to IDR 486bn, leaving net margin income up 5% to IDR 5,260bn.

• Operating income excluding recovery increased 4% to IDR 5,264bn; operating expense and bonus wadiah rose 9% to IDR 2,043bn; pre-provision profit excluding recovery was up 1% to IDR 3,221bn.

• Net financing loss rose 106% to IDR 1,842bn and financing loss provision increased 101% to IDR 1,898bn; recovery was IDR 56bn, up 9%.

• Q4'23 profit after tax was IDR 77bn, versus IDR 251bn in Q3'23; Q4 financing loss provision was IDR 700bn, versus IDR 517bn in Q3'23.

Key financial ratios and metrics

• FY23 ROA was 6.3% versus 11.4% in FY22; ROE was 13.2% versus 24.2%.

• Gross NPF was 2.9% versus 2.6% in FY22; net NPF was 0.3%, unchanged YoY.

• Cost to income was 38% versus 37%; net-financing-loss ratio was 15.5% versus 8.0%.

• Loan provision coverage increased to 363% from 252%; CAR was 51.6% versus 53.7% in FY22.