This Bank Danamon's Secrets Can Sheet A Net Profit Of IDR 3.3 Trillion In 2022

JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) managed to reap a net profit of 2022 of IDR 3.3 trillion at the end of 2022, or an increase of 110 percent from the 2021 period of IDR 1.6 trillion.

Bank Danamon Finance Director Muljono Tjandra explained that this growth was due to an increase in net interest income and a decrease in the company's cost of credit costs.

"Our net interest margin increased by 30 bps compared to last year or reached 8 percent. Meanwhile, the cost of credit ratio improved by 200 bps compared to last year's 2.4 percent," he explained in a virtual presentation of Bank Danamon's fiscal year performance, Wednesday, February 15.

In addition, he continued, in terms of lending, Bank Danamon managed to record growth of 12 percent reaching IDR 146.7 trillion. This figure is the highest in the history of Bank Danamon.

"This healthy growth is supported by commercial banking credit and consumer credit, both of which have grown by 18 percent," he explained.

Muljono added that this growth was also supported by a collaboration that was sustainable by MUFG. In line with Bank Danamon's focus on increasing low-cost funds, demand balance and savings (CASA) increased by 12 percent to the highest 81.3 trillion in history.

"For this reason, our ratio of demand deposits and savings or CASA to 63.9 percent from 59.1 percent in 2021, is also the highest achievement in the history of Bank Danamon." added Muljono.

The increase in credit ratio was also followed by the increase in the ratio of non-performing loans or NPL in 2022 to 2.6 percent or an increase of 10 bps compared to the previous year. In addition, BDMN also recorded an NPL coverage ratio which increased from last year reaching 231 percent.

"LAR covid is down 341 bps yoy at 12.6 percent, the ratio of prudential macro intermediation has increased to 92.1 percent, which shows a good level of bank liquidity," explained Muljono.

In addition, Bank Danamon's consolidated minimum capital supply obligation ratio (KPMM) is at 26.3 percent until December 2022.