Jakarta, 27 April 2022 – PT Bank Danamon Indonesia Tbk (Danamon) recorded a positive performance in Q1 2022. Danamon’s Net Profit After Tax (NPAT) grew by 65% year-on-year, while operating profit grew 49% year-on-year.
“I’m very pleased to share that Danamon’s positive results in Q1 2022 is supported by enhanced synergy and collaboration with Adira Finance and MUFG, as well as continued expansion of our digital capabilities and partnerships,” said Yasushi Itagaki, President Director of PT Bank Danamon Indonesia Tbk.
Sustainable Business Growth and Healthy Asset Quality
Danamon continued its positive growth despite social restrictions (PPKM) brought about by emergence of the Omicron variant during the first quarter of this year. By implementing prudent loan selection strategies, the bank’s Enterprise Banking (EB) portfolio reached Rp61 trillion, an increase of 10% year-on-year. This growth was supported by its collaboration with MUFG’s network and emphasis on blue-chip customers and State-Owned Enterprises (SOEs). During that same period and parallel to the improvement of the auto financing sector, the Bank’s subsidiary Adira Finance experienced an increase of 33% in new financing compared to the first quarter last year.
Also in Q1 2022, the bank’s continuing focus on granular funding growth paved the way towards a 12% increase in Current Account and Savings Account (CASA) with CASA ratio reaching 60.5% compared to 54.7% recorded in the same period last year.
Danamon’s asset quality also showed continuous improvement. NPL coverage ratio was at 209% in first quarter 2022 from 177% in first quarter 2021. Also in Q1 2022, Gross NPL ratio improved 50 bps to 2.8% while Loan at Risk (LAR) percentage, which includes COVID restructured loans under forbearance at 15.4%, improved by 60bps compared to same period last year.
These financial indicators contributed to Danamon’s profitability characterized by stable quarterly trend of Net Interest Margin (NIM) at 7.9% while operating profit grew 49% year-on-year. By the end of first quarter 2022, the bank’s Net Profit After Tax was recorded at Rp860 billion, a 65% increase compared to the same period in the previous year.
Synergy with Adira Finance and MUFG to Support Indonesia’s Automotive Industry Revival
Collaboration and synergy between Danamon, Adira Finance and MUFG, provided the impetus for the group’s participation in the recently concluded Indonesia International Motor Show Hybrid 2022 (IIMS) at the JIExpo from 31 March to 10 April 2022. Danamon’s product offering at the IIMS Hybrid 2022 emphasized on KPM Prima (car and motorcycle financing), supported by Adira Finance, to help customers easily realize their dreams of owning or upgrading their motor vehicle. Moreover, Danamon also provided total financial solutions that assist both existing and potential customers in realizing their financial and wealth creation requirements, such as KPR Prima (mortgage), Credit Cards, Savings, Bancassurance, as well as D-Bank PRO as a mobile banking application and integrated digital solution.
For automotive financing, an estimated value of approximately Rp300 billion or about 2,000 in applications were received – this number is expected to continue to increase as evaluation processes continue. Furthermore, cooperation with various property developers resulted in home ownership loan requests with a total property value of approximately Rp100 billion. The Bank was also able to acquire more than 3,000 new applications for savings accounts and credit card.
In the closing ceremony held on Saturday, 9 April 2022 at the Infinite JIExpo stage, Danamon together with Adira Finance and supported by MUFG also won the Best Sponsor Booth award from Dyandra Promosindo as the organizer of IIMS Hybrid 2022. Danamon, Adira Finance and MUFG also won the MURI record for the category 'Automotive Exhibition with the Most Grand Prizes'.
Together, Danamon, Adira Finance and MUFG also remain committed to the event’s emphasis on green transition, and support sustainable business development including access to environmentally-friendly technology. While Indonesia has set its sights on achieving net-zero emissions by 2060, Danamon expects growing interest from companies to invest in Indonesia's renewable energy and stands ready to provide the necessary support to make this a reality.
Danamon has extended its commitment, beyond IIMS Hybrid 2022, to serve both existing and potential customers in the Consumer and Wholesale Banking segments to support a sustainable automotive industry in Indonesia.
Continued Expansion in Digital Capability and Partnership
With the journey of expanding the customer reach and improving customer experience in mind, Danamon continued to progress in the digital space through capability enhancement efforts and partnerships with financial technology companies. These include further innovations to improve D-Bank PRO by launching the D-Wallet for Android and D-Save Online Onboarding programs. Highlighting the development progress of Danamon’s mobile banking application and its integrated digital solution in 1Q22, Danamon expanded new partnerships with CekAja.com and CariNih for online onboarding programs as well as with Dana for Application Programming Interface (API) onboarding and direct debit programs.
Awards and Recognitions
Danamon’s steady stream of financial achievements highlights its laudable efforts to provide the best quality financial products and services to customers. These efforts have been recognized through various industry distinctions, including the 11th Infobank Digital Brand Awards by the Infobank Media Group and Isentia global media monitoring, intelligence and insights solution agency, in which Danamon earned awards across 10 categories, specifically first place for Deposits, Mortgage, Mobile Banking and Wealth Management by a Conventional Bank, second place for Conventional Bank (KBMI 3 – Core capital of Rp 14 trillion to Rp 70 trillion), second place for Sharia Business Unit, Savings products and Credit Cards by a Conventional Bank, and third place for Internet Banking and Debit Cards by a Conventional Bank.
In March, First Indonesia magazine gave the Indonesia CSR Excellence Award to Danamon for the categories of Most Excellent CSR Company 2022, and best in the areas of workplace environment, CSR program based on Digital Culture and CSR program leadership focus. In that same month, Danamon also received Platinum Greenship certification by Indonesia’s Green Building Council and placed second in the Suspicious Financial Transaction Reporting involving Green Financial Crime by the Financial Transaction Reporting and Analysis Center.
“Our positive performance and growth are due to continued and relentless efforts to realize Danamon’s brand promise of providing financial solutions so that customers take control of their financial needs and objectives,” concluded Yasushi Itagaki.
Ni Luh Putu Utami Arsaningrum
Corporate Communications Manager
PT Bank Danamon Indonesia TbkUtami.Arsaningrum@danamon.co.id