Up Thin, Bank Danamon Prints IDR 2.6 Trillion Profit In The Third Quarter Of 2023

Rupiah illustration (Photo: dock. Antara)

JAKARTA - PT Bank Danamon Indonesia Tbk recorded a profit increase of 1 percent in the first 9 months of 2023. Danamon reported a consolidated Net Profit After Tax (NPAT) of IDR 2.6 trillion during January September 2023.

Meanwhile, Net Interest Margin (NIM) managed to grow by 26 basis points (bps) yoy with Operational Revenue increasing by 7 percent yoy to Rp13.3 trillion.

Total Credit and Trade Finance grew by 18 percent yoy or reached IDR 166.2 trillion, supported by stronger credit growth in all business segments.

The largest contributor to the total portfolio loan is the Credit segment of the Enterprise Banking & Financial Institution which reached IDR 75.6 trillion, growing 14 percent yoy, followed by loans originating from financing a subsidiary of Bank Danamon, PT Adira Dinamika Multi Finance Tbk. (Adira Finance) amounted to IDR 52.8 trillion, growing 26 percent yoy.

Adira Finance's new financing grew by 39 percent yoy. Consumer loans reached the highest growth rate of 31 percent yoy reaching IDR 15.3 trillion, while SME loans showed growth of 10 percent yoy.

In the midst of high interest rates, Danamon can maintain granular funding growth of 9 percent yoy.

Danamon balances credit growth with adequate asset quality management.

This is reflected in the Loan at Risk (LAR) ratio (including the restructuring of Covid-19 which is still being relaxed) which has decreased to 12.3 percent, an improvement of 190 bps yoy.

Danamon also increased the non-performing loan (NPL) coverage to 252.7 percent to support credit growth.

"We will continue to maintain and strive beyond this achievement in the future, including increasingly exploring and optimizing our collaboration with business people in the MUFG ecosystem network," said Bank Danamon Daisuke Ejima President Director, Monday, October 30.