Bank Danamon Books IDR 1.7 Trillion Net Profit In Semester I 2022

JAKARTA - PT Bank Danamon Tbk recorded a good performance in Semester I 2022 by posting net profit after tax or NPAT growing 70 percent (yoy) to IDR 1.7 trillion.

“Supported by healthy credit growth. Compared to last year, total loans have grown by 6 percent (yoy) or 5 percent compared to the last quarter, reaching around IDR 139.7 trillion," said Finance Director of PT Bank Danamon, Muljono Tjandra as quoted by Antara, Friday, July 29.

Muljono said the growth of NPAT was also driven by the ability of banks to manage net interest margins or NIMs through the discipline of cost of funds.

Currently, Bank Danamon's focus is more on low-cost funds, namely from saving accounts and current accounts.

Danamon's expense income also increased as it was also supported by diversification from improving asset quality.

"In terms of year on year, we see that our NIM ratio has increased 40 basis points to 7.9 percent and our CoC ratio has decreased by 210 points to 2.3 percent," he said.

Growth occurred in all of Danamon's business lines, which was mainly supported by the growth of the enterprise banking segment portfolio consisting of corporate and commercial banking as well as other financial institutions.

"The enterprise banking segment rose 18 percent (yoy) or 10 percent compared to the last quarter, now with a total loan of IDR 67 trillion," he said.

In addition, Adira Finance's new financing throughout 2022 showed healthy growth of 21 percent compared to mid-2021.

In line with Danamon's strategic steps in digitalization and institutional approach, current and savings accounts or CASA balances also increased 17 percent compared to last year to IDR 79.6 trillion.

"This is also reflected in the current and savings ratio (CASA Ratio) which increased by 810 basis points compared to last year to 64.4 percent," said Muljono.

Danamon also recorded a non-performing loan ratio or Gross NPL at 2.8 percent in mid-2022, an improvement of 20 basis points compared to the previous year.

Meanwhile, the NPL Coverage Ratio was recorded to be quite high at 203 percent, improving by 200 basis points (yoy).

"Meanwhile, Danamon's capital is still very strong with a consolidated Minimum Capital Adequacy Requirement (KPMM) of around 26 percent," said Muljono.