DANAMON ANNOUNCES HALF YEAR 2022 FINANCIAL RESULTS

Press Release / 29 July 2022

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Jakarta, July 28th 2022 - PT Bank Danamon Indonesia Tbk (“Danamon” or “the Bank”) announces its First Half Year 2022 financial result virtually during the Press Conference in Jakarta today.

Danamon reported a consolidated net profit after taxes (NPAT) of IDR 1.7 trillion in the first half of 2022. Total loan grew by 6% on year-on-year basis or 5% compared to the last quarter, to reach IDR 139.7 trillion across all of Danamon’s lines of business on a quarterly basis. This encouraging growth is mainly supported by the growth in Enterprise Banking segment portfolio, consisting of Corporate and Commercial Banking, as well as from Financial Institutions, which rose by 18% year-on-year, or 10% compared to the last quarter, to IDR 67 trillion.

Danamon managed to post a 70% growth in profit and was able to maintain strong fundamentals amid the onging economic recovery. Operational resilience and bank soundness remained strong, providing stable services and supports to customers. Various Investments in Digital Channels, IT, Branding and People are also continuously made by the Bank.

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 provide the best service to our customers. “As a member of MUFG family, we achieved substantial busines growth, while our NPL gross improved to 2.8 percent and Loan at Risk improved to 15.0% due to our prudent risk management, rigorous collection, and debt recovery”, explained Yasushi Itagaki, President Director Danamon. 

In 2022, one of Danamon's main strategies is to invest and strengthen capabilities in terms of IT infrastructure and digital capabilities. Danamon will also continue to make several investments to improve branding and human resources. As a result of this investment, Danamon's Cost-to-Income will be slightly higher compared to 2021. However, this investment will help increase the Bank's competitiveness in the market, and by maintaining discipline in managing operational costs, Danamon is optimistic that in the long term CIR will be below 50%.

“Danamon will continue its strong synergy with Adira Finance in supporting the automotive ecosystem in Indonesia through various financing solutions and innovations. The synergy between Danamon, Adira Finance and MUFG's global network forms a strong collaboration to support the long-term growth of the Indonesian economy as well as the recovery of the national economy and the automotive industry after the COVID-19 pandemic. This is shown through Danamon's participation in supporting the series of Indonesia International Motor Show (IIMS) Hybrid 2022. Danamon has a very unique and strong position in Indonesia with the support and network of MUFG and Adira Finance” added Yasushi Itagaki.

Healthy Asset Quality

Bank Danamon maintained healthy asset quality management through prudent enforcement of risk assessment procedures, disciplined collection and debt recovery during the first semester of 2022. Compared to the previous year, Non-performing Loans (NPLs) gross improved by 20 basis points (bps) to 2.8 percent in the first half of 2022. Simultaneously, as part of its efforts to place a solid foundation for growth in the first half of 2022, Bank Danamon proactively improved provisions, with the NPL coverage ratio reaching of 203 percent.

Together with Adira Finance, Bank Danamon continues to aid clients affected by COVID-19 through credit restructuring, based on guidelines from regulators. Until the first half of 2022, Loan at Risk ratio, including COVID restructured loans still under forbearance, improved 490 bps YoY to 15.0%.

Strong Liquidity and Capital

Compared to the first half year of 2021, Bank Danamon also posted 17% growth in Current and Savings Accounts (CASA) reached IDR 79.6 trillion, thus increasing CASA ratio by 810bps to 64.4%.

Danamon continue to maintain healthy liquidity as shown in Macroprudential Intermediation Ratio (RIM) of 91.4% and the Loan to Deposit Ratio at 89.9%. 

The Bank’s Capital Adequacy Ratio (CAR) remains one of the strongest in its category. Consolidated CAR at 26.0% as of the first half of 2022, far above the minimum requirement. 

Awards and Achievements

Danamon also received several prestigious awards during the first half of 2022 including the award for The Best Digital Banking for Data Dimensions in the Digital Bank Award 2022. In addition, Danamon also received recognition at the prestigious “13th Annual Retail Banker International Asia Trailblazer Awards” and won three awards. at the same time, namely: Best Retail Bank (Indonesia); Indonesia Best Open Banking Initiative; and Highly Recommended – Best Fintech Partnership. Earlier this year, Danamon also won the “Top 100 Most Valuable Brands 2021” award from Brand Finance Indonesia and Investor Magazine - Beritasatu Media Holdings. The results of the Brand Finance Indonesia research stated that Danamon has a Brand Value that is included in the Platinum category, which ranges from USD300 to 999 million. Meanwhile, at the end of last year, Danamon was named The Best Financial Performance Bank 2021 for the Conventional Bank category with assets above Rp100 trillion at the Tempo Financial Award event.

Increased Focus on Sustainable Finance

Furthermore, as part of the MUFG family, Danamon is committed to achieving net-zero emissions in its operations and business activities by 2030. To that end, Danamon has proactively implemented various measures to reduce carbon emissions, among others by installing solar panels in our office buildings. To amplify such initiative, Danamon invites employees and the community to install solar panels through an easy and light financing program.

Through the Danamon Peduli program as a form of Company's CSR activities, Danamon actively campaigns for carbon emission reduction initiatives and collaborates with the communities where it operates. One of which is through the “Peduli Lingkungan” activities involving employees and other stakeholders. This program aims to accelerate the improvement of economic welfare, social and environmental quality by way of utilizing renewable energy, such as sunlight by installing solar panels.

This was further demonstrated, among others, through the mangrove tree planting program that was recently conducted in Bali. Collaborated with the Fishermen Group of Prapat Agung Mengening Patasari Kuta, UPTD Tahura Ngurah Rai and the Denpasar City Housing, Settlement and Land Office, the program had planted 10,000 mangrove trees. Furthermore, Danamon in the Bali Nusa Tenggara Region also initiated the construction of a city park in the Kuta area, Bali.

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For more questions, please contact:

Ni Luh Putu Utami Arsaningrum

Corporate Communications Manager

PT Bank Danamon Indonesia Tbk

Utami.Arsaningrum@danamon.co.id

Cindyani Lasmana

Corporate Communications Head

PT Bank Danamon Indonesia Tbk

cindyani.lasmana@danamon.co.id