Bank Danamon Announces First Nine Months of 2019 Results

Press Release / 23 October 2019

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Jakarta, 23 October 2019. PT Bank Danamon Indonesia Tbk (“Danamon” or the “Bank”) today announced its first nine months of 2019 financial results. The Bank’s total loans and trade finance portfolio registered growth of 7% to reach IDR 143.6 trillion in the first nine months of 2019, as compared to the same period last year. 

The Bank also recorded growth in funding. CASA and Time Deposit grew by 10% and 17%, respectively, compared to the same period last year. In the first nine months of 2019, Danamon recorded net profit after tax (NPAT) of IDR 2.6 trillion.

“With the investment of MUFG and the completion of the merger with Bank Nusantara Parahyangan (Bank BNP), we can now look forward to embracing the opportunities as a member of MUFG network. MUFG is the largest bank in Japan and a leading financial institution in the world. Going forward, Danamon will be able to leverage on MUFG’s strengths, expertise and network to serve our customers, deliver growth and long-term value to all stakeholders.” said Muljono Tjandra, Chief Financial Officer of Bank Danamon.

“Bank Danamon continues to diversify revenue streams, strengthen customer service, and undertake comprehensive implementation of technology and digital solutions. Going forward, we expect to see more positive results and achievements due to collaboration with MUFG. This will definitely bring long-term sustainable growth to Bank Danamon,” added Muljono.

Lending Growth in Key Segments

In the first nine months of 2019, Mortgage loans increased 22% year-on-year (YoY) to IDR 8.96 trillion. Enterprise Banking which consists of Corporate and Commercial loans and Financial Institutions segments or EB & FI grew 11% to IDR 42.2 trillion. Meanwhile, SME banking loans grew 9% from the same period last year to IDR 33.4 trillion.

In terms of automotive financing, Adira Finance booked an 8% YoY growth to end the first nine months of 2019 at IDR 53.9 trillion. 

Excluding Micro-financing, the Bank’s overall loans and trade finance portfolio grew by 9% to IDR 142.8 trillion as compared to the previous year.

Healthy Capital and Liquidity

Danamon’s capital adequacy ratio (CAR) remained one of the best among its peer banks. Post-merger with Bank BNP, consolidated and bank-only CAR stood at 22.5% and 23.0%, respectively. CASA increased by 10% to IDR 54.2 trillion, while Time Deposits increased by 17% to IDR 59.4 trillion. The Bank’s Macro-prudential Intermediation Ratio (RIM) of 97.4% indicated adequate liquidity to support growth. 

Prudent Asset Quality Management

The Bank continued to improve its prudent enforcement of risk assessment procedures and asset quality management through disciplined credit underwriting, monitoring, collection and recovery of debts. NPL ratio stood at 3.2%. Cost of credit ratio stood at 2.7%.