DANAMON ANNOUNCES SOLID FINANCIAL PERFORMANCE IN THE THIRD QUARTER OF 2022

Press Release / 31 October 2022

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Jakarta, 31 October 2022 – PT Bank Danamon Indonesia Tbk (“Danamon” and “Bank”) today announces its Third Quarter (Q3) 2022 financial performance results.

Amid market uncertainties and economic challenges, Danamon reported a consolidated net profit after taxes (NPAT) of IDR 2.5 trillion in the ninth month of 2022, increased by 79% from the same period last year Year-on-Year (YoY). The Bank managed to book 8% YoY growth in Total Loan and Trade Finance. The biggest contributor of this growth came from Enterprise Banking and Consumer Banking portfolio, which grew by 16% and 11% YoY respectively. Growth in these two segments were supported by MUFG collaboration and segmentation approach. In addition, Adira Finance, Danamon’s multi-finance subsidiary, has booked a 21% increase in new financing compared to last year.

Through Institutional Approach and Digital, Danamon has maintained positive growth in granular funding. CASA grew by 14% YoY and CASA ratio improved to reach 64.2% in 3Q22 compared to 57.6% in 3Q21. Improvement in funding composition and cost of fund increased Net Interest Margin by 32 basis point (bps) YoY.

Danamon continued to strengthen its asset quality, as the Consolidated Non-Performing Loan (NPL) has decreased to 2.7% in 3Q22, improved by 40 bps from last year. Danamon also proactively improved its provision with NPL Coverage Ratio of 217%, compares to 175% in the same period last year. While Loan at Risk (LAR) Ratio, including COVID restructure still under forbearance, has improved 460bps YoY to 14% .

As one of the leading and trusted banks in Indonesia, Danamon is always committed to provide the most suitable banking and financial solutions by considering the needs of its customers. Danamon has carried out various collaborations with several partners, such as LinkQu, a fintech company that focuses on interbank fund transfer services, to support transfer services in Danamon Virtual Accounts; Zurich Asuransi Indonesia to launch an insurance package for MSMEs specifically designed to support their development and growth; and Eastspring Investment Indonesia to introduce Eastspring IDX ESG Leaders Plus Index Mutual Fund as an investment choice that prioritizes the principles of sustainability. 

Strengthening position in the Indonesian banking industry with series of awards and recognitions

In Third Quarter 2022, Danamon has also maintained and strengthen its branding in the eyes of customers and the market in Indonesia with series of awards and recognitions, including the Digital Banking Awards 2022 by Investor Magazine together with Intellectual Business Community (IBC); the19th Infobank Banking Service Excellence Award 2022 by Infobank Media Group for both the Bank’s conventional and Sharia business lines; The Asset Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards 2022 by The Asset Publishing and Research Ltd for the Best Payments and Collections Solution category; as well as the  TOP GRC Awards 2022 by Top Business Magazine in collaboration with the Indonesian GRC Association, the Indonesia Risk Management Professional Association (IRMAPA), the Institute Compliance Professional Indonesia (ICoPI), the Indonesia Professional Governance Association (PaGI), in recognition of Danamon’s commitment in the areas of Governance, Risk and Compliance. 

Danamon continues to adapt the principles of Sustainability

As a member of MUFG, a global financial group, Danamon is committed to achieve net zero emission for its own operations by 2030. Danamon has continued to implement various policies and programs to achieve this goal, including reducing carbon impact by installing solar panels in various Danamon office buildings, providing an affordable financing program for employees and communities in Indonesia for the installation of solar panels, and building an Electric Vehicle (EV) charging station for Danamon, Adira Finance and MUFG employees at Menara Bank Danamon Jakarta. 

Furthermore, through the Danamon Peduli CSR program, Danamon actively conducts carbon emission reduction campaigns and activities throughout Indonesia to help improve people’s quality of life through various initiatives and synergy with the government, customers, employees, and communities where Danamon operates. These include the planting of 10,000 mangrove trees and construction of a city park in Kuta, Bali, collaborating with the Prapat Agung Mengening Patasari fishing group, UPTD Tahura Ngurah Rai and Dinas Perumahan, Kawasan Permukiman dan Pertanahan Denpasar. Danamon also inaugurated a clean water facility in Pacitan, East Java in collaboration with Dompet Dhuafa and Habitat Indonesia. Most recently, Danamon carried out Danamon Peduli activities in Banyuasin, South Sumatera by planting 55 productive trees in collaboration Saung Pelangi Bambu Serumpun and in Medan, North Sumatera, by planting 1,100 trees in collaboration with the Medan Public Market.

“Danamon is committed to grow as a customer-centric organization covering all customer segments as “Your Bank of Choice”, with a unique value proposition centered on sales and service excellence, strong synergy with our partners, the Indonesian government and community - supported by world class technology. We remain committed to providing financial solutions so that customers take control of their financial needs and objectives,” concluded Itagaki.

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