Danamon Announces 2021 Financial Results

Jakarta, February 16th, 2022 – PT Bank Danamon Indonesia Tbk (“Danamon” or “the Bank”) announces its 2021 financial result virtually during the 2021 Fiscal Year Financial Results Press Conference in Jakarta today.

Danamon reported a consolidated net profit after taxes (NPAT) of IDR 1.6 trillion in 2021. Enterprise Banking loans, consists of Corporate and Commercial Banking, as well as from Financial Institutions, rose by 6% year-on-year valued at IDR 58 trillion.

Compared to 2020, Bank Danamon also posted 11% growth in Current and Savings Accounts (CASA) valued now at IDR 73 trillion, thus increasing CASA ratio to 59.1%.

Danamon managed to post a 56% growth in profit and was able to maintain strong fundamentals amid pandemic and economic challenges. Operational resilience and bank soundness continue to demonstrate robust progression, providing stable services and supports to customers. Various Investments in Digital Channels, IT, Branding and People are also continuously made by the Bank.

Global rating agency, Moody's Investor Service, raised the long-term deposit rating and Adjusted Baseline Credit Assessment (BCA) of Danamon to Baa1, this rating upgrade reflects the Bank’s solid fundamentals and strong support from MUFG as parent company. 

Danamon received prestigious awards and accolades in 2021 such as the 2021 Asian Banker Transaction Award for role in providing cash management system services through real-time automatic payment and posting facilities, the 2021 Indonesian Property Award for The Most Progressive Mortgage Banks with Accelerating Partnership, The Asset’s Triple A Awards in the category of Best Hedging and Solution: FX, Indonesia, ranked Very Good in Managing Transformation by SWA Magazine’s Indonesia HR Excellence 2021, ranked number one in Best Overall Satisfaction, Loyalty and Engagement for BUKU 4 Banks by Infobank, as well as Most Popular Digital Financial Brands (Millenial's Choice) 2021 in the category of BUKU 4 Banks by Iconomics. Danamon also received the Mitra Bakti Husada 2021 Awards from Indonesian Ministry of Health, in recognition of its digital innovation efforts and implementation of health protocol in the company

As part of MUFG, the largest bank in Japan and one of the leading financial institutions in the world, we have access to MUFG strengths, expertise and network to serve our customers. Through our relationship with MUFG, we achieved substantial loan growth in Enterprise Banking. We reduced NPL gross to 2.7 percent, while achieving record high NPL coverage ratio due to our conservative risk management, rigorous collection, and debt recovery,” explained Yasushi Itagaki, President Director Danamon
“Collaborations between Danamon, Adira Finance, MUFG is also key – utilizing each entities’ respective strength. As a group, we share the same aspiration to provide comprehensive financial solutions across segments and value chains including automotive industry ecosystem and Japanese real estate developers’ ecosystem. We are committed to develop a customer-centric organization to prioritize the interest of our customers, as well as all our stakeholders, align with our brand promise which is to provide financial solutions for our customers to take control of their financial needs and objectives,” added Yasushi Itagaki

Credit Growth
Despite challenges brought on by the pandemic, Danamon posted 6% credit growth from Enterprise Banking, attributable to the Bank’s collaboration and support of MUFG’s global network as one of the largest banks in the world. Danamon and MUFG will hold another Business Matching Fair to provide a venue for Indonesian corporate and commercial banking clients to meet potential international business partners, as the Bank is taking advantage of the economic recovery's momentum. Aside from providing local clients with the opportunity to conduct businesses beyond the country’s borders, the event will also hopefully contribute in keeping the wheels of economic recovery in motion.
In automotive financing, Danamon’s subsidiary Adira Finance, recorded financing which amounted to IDR 40 trillion in 2021. New financing in the final quarter of 2021 increased by 47% compared to the same period last year, and was 26% higher compared to new financing in the third quarter.

Healthy Asset Quality
Bank Danamon maintained healthy asset quality management through prudent enforcement of risk assessment procedures, disciplined collection and debt recovery during the second semester of 2021. Compared to the end of 2020, by the end of 2021 Nonperforming Loans (NPLs) gross improved by 10 basis points (bps) to 2.7 percent. Simultaneously, as part of its efforts to place a solid foundation for growth in 2021, Bank Danamon proactively improved provisions, with the NPL coverage ratio reaching a new high of 225.6 percent.
Together with Adira Finance, Bank Danamon continues to aid clients affected by COVID-19 through credit restructuring, based on guidelines from regulators. As of December 2021, Loan at risk ratio, including COVID restructure loans still under forbearance, improved 810bps YoY to 16.0%.

Healthy Liquidity and Capital
Danamon primarily focused on granular funding, reflected in Current and Savings Accounts (CASA) growth of 11 percent year over year reached IDR 73 trillion, while CASA ratio increased by 680bps to 59.1%. 
Macroprudential Intermediation Ratio (RIM) of 86% and the Loan to Deposit Ratio at 85% indicate Danamon’s high liquidity.
The Bank’s Capital Adequacy Ratio (CAR) remains one of the strongest in its category. Consolidated CAR increased to 26.7% as of the end of 2021, compared to 25,0% from the previous year.

Digital Investments to Enhance Customer Convenience
In May 2021, Danamon launched DBank-PRO, a new mobile banking application with more features and omnichannel experiences. For the sharia banking services, Danamon Syariah Business Unit (UUS) introduced digital Waqf in 2021 to increase customer convenience for making donations. Danamon also continued to improve the Danamon Cash Connect service and provide customized cash management solutions for business customers. Close to 80% of all transactions are now done via digital channels.

Increased Focus on Sustainable Finance
Danamon views sustainability matters as an integral part of the business. Various efforts in 2021 including increasing awareness and knowledge of employee on sustainability, completing green building certification for our head office and sustainability financing serve as a testament to our comittment on sustainability.



PT Bank Danamon Indonesia Tbk 
CONSOLIDATED FINANCIAL HIGHLIGHTS
Per 31 December 2021

Rp Billion

FY 2020

FY 2021

∆ YoY

Q3 2021

Q4 2021

∆ QoQ

Income Statement

 

 

 

 

 

 

Net interest income1)

13,645

13,705

0%

3,416

3,473

2%

Non - Interest Income

3,322

3,160

-5%

604

1,205

100%

Operating Income

16,961

16,864

-1%

4,020

4,678

16%

Operating Expenses

(8,237)

(8,600)

4%

(2,166)

(2,233)

3%

Cost of Credit

(6,523)

(5,699)

-13%

(1,143)

(2,027)

77%

Net Profit After Tax

1,008

1,573

56%

411

164

-60%

 

 

 

 

 

 

 

Rp Billion

FY 2020

FY 2021

∆ YoY

Q3 2021

Q4 2021

∆ QoQ

Balance Sheet

 

 

 

 

 

 

Total Assets

200,890

192,240

-4%

188,280

192,240

2%

Total Loan Portfolio and Trade Finance 2)

135,786

130,502

-4%

129,511

130,502

1%

Government Bonds

25,535

30,338

19%

31,078

30,338

-2%

Total Funding

143,555

134,380

-6%

128,920

134,380

4%

CASA

65,999

72,932

11%

67,383

72,932

8%

Equity

43,108

44,539

3%

44,260

44,539

1%

 

 

 

 

 

 

 

%

FY 2020

FY 2021

∆ YoY

Q3 2021

Q4 2021

∆ QoQ

Financial Ratio

 

 

 

 

 

 

Net Interest Margin

7.5

7.7

0.2

7.8

7.9

0.1

Cost to Income

48.5

51.0

2.5

53.9

47.7

-6.2

ROAA

0.5

0.8

0.3

0.9

0.3

-0.6

ROAE3)

2.6

4.1

1.4

4.2

1.7

-2.5

RIM

85.0

86.0

1.0

89.1

86.0

-3.0

NPL-Gross

2.8

2.7

-0.1

3.1

2.7

-0.3

Consolidated CAR

25.0

26.7

1.8

26.4

26.7

0.3

 

1) Netted-off with loss on restructuring

2) Trade Finance includes marketable securities

3) Following the new OJK regulations in July20, ROAE is calculated per core capital (tier-1).


For more information, please contact:

Ni Luh Putu Utami Arsaningrum
Corporate Communications Manager
PT Bank Danamon Indonesia, Tbk
Email: utami.arsaningrum@danamon.co.id




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