Mandiri, BTN Duet Dominates Housing Credit Business
23 April 2014 13:24 WIB
TEMPO.CO, Jakarta - Bank Tabungan Negara (BTN) has the chance to strengthen its position in the housing loan market with Bank Mandiri's plan to acquire the company. Some analysts said that the merger would strengthen the credit portfolio of both state-owned banks.
"BTN's presence will increase Bank Mandiri's credit portfolio," said Satrio Utomo, Universal Broker Indonesia chief researcher, contacted yesterday.
Investa Saran Mandiri analyst, Kiswoyo Adi Joe, predicted that the acquisition would make BTN excel more in the housing loan sector. Bank Mandiri will get the advantage from the housing sector to complement the revenues from corporate sector loan. "Bank Mandiri will do better in housing," he said.
HD Capital analyst, Yuganur Widjanarko, said that BTN acquisition would add the net asset value of Bank Mandiri. He estimated that the housing loan business would be dominated by banks with large capitalization value. "State-owned or private banks such as BCA will dominate," he said.
Meanwhile, David Cornelis, KSK Financial Group chief researcher, said that BTN and Mandiri were both financially healthy. Mandiri and BTN recorded profit growths of 17.4 and 14.5 percent respectively in 2013. With this situation, Mandiri's price earning ratio (PER) of shares reached 11.2 times with 20 percent return on equity (ROE), while BTN gained 6.2 times PER with 16.5 ROE.
Based on BTN data, the company owns 23 percent of housing loan market. In the subsidized loan market, as of June 2013, BTN dominates 94 percent of housing finance liquidity facility program from the Public Housing Ministry. Meanwhile, Bank Mandiri owns 10 percent of housing loan market.
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