Bank Danamon Distributes Rp174.9 Trillion Loans Throughout 2023

Bank Danamon (Photo: Antara)

JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) recorded the highest record in lending. Total credit and Trade and Finance grew by 19 percent Year-on-Year (yoy) to IDR 174.9 trillion, supported by growth from Danamon's four main business lines.

This credit growth is higher than the average credit growth in the banking industry which reached 10 percent throughout 2023.

President Director of PT Bank Danamon Indonesia Tbk Daisuke Ejima said the consumer credit portfolio showed credit growth was the highest reaching 41 percent yoy supported by partnerships with Japanese real estate companies and the acquisition of Standard Chartered Bank consumer credit portfolios.

"Focusing on increasing productivity and improving processes, the SME Credit segment increased its credit by 9 percent compared to the previous year," Daisuke said in an online press conference, Monday, February 19.

He continued, the credit portfolio from the Enterprise Banking & Financial Institution segment contributed the highest portfolio to reach IDR 78.8 trillion, growing 15 percent yoy.

Automotive and multipurpose financing from PT Adira Dinamika Multi Finance, Tbk. (Adira Finance), a subsidiary of Danamon grew 25 percent yoy to reach IDR 55.7 trillion. Through increased collaboration with Danamon and MUFG, Adira Finance managed to increase its new financing by 31 percent yoy in 2023.

This rapid credit growth is supported by good asset quality management. The non-performing loan (NPL) ratio - gross was successfully lowered to 2.2 percent, and the Loan at Risk (LAR) ratio (including the restructuring of Covid-19 which is still being relaxed) has fallen to 11.6 percent, improving 100 basis points (bps) yoy.

Danamon also balances credit growth with a strong NPL coverage ratio of 265.9 percent.

He added that Danamon also managed to record a growth in Third Party Funds (DPK) of 10 percent yoy reaching Rp140.4 trillion. National-scale programs such as Danamon Berkat Bertuntun, the implementation of the Next Generation Branch, as well as the development of digital platforms in a sustainable manner have increased the reach and involvement of customers.

In the midst of high interest rate conditions, Danamon managed to increase Net Interest Margin (NIM) by 20 bps to 8.2 percent. Operating income also increased by 7 percent yoy to IDR 18.2 trillion. Danamon posted an increase in Net Profit after Tax (NPAT) of IDR 3.5 trillion in 2023, an increase of 6 percent yoy compared to the previous year.