Danamon Has Not Planned To Raise The KPR Interest Rate

Home (photo: dock. Antara)

JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) has not planned to increase the interest rate of Home Ownership Loans (KPR) in the near future.

Consumer Funding & Wealth Business Head Bank Danamon Ivan Jaya said that currently his party needs to focus on reviewing the aspect of demand in the housing market after the increase in Bank Indonesia (BI) or BI-Rate interest rates to 6.25 percent.

"So for now we are not directly (increasing the mortgage interest rate), the answer is not directly responding that interest rates are raised, because we are still eyeing credit growth in consumers," Ivan said, quoting ANtara.

Ivan assessed that the increase in BI interest rates has the potential to raise loan interest rates, including credits that apply floating rates such as home ownership loans (KPR).

He said that the Company is currently still eyeing credit growth in the consumer sector, including mortgages. The company targets mortgage financing to grow in double digits in 2024.

Nevertheless, seeing the market conditions in the midst of high interest rates, Ivan remains optimistic about the KPR's business prospects. According to him, the high need for housing has raised its own level of optimism in the housing financing sector.

Bank Danamon's consumer credit is also considered to continue to grow with the support of improving economic activity after the COVID-19 pandemic.

"So we see that the need will remain, and our infrastructure growth will also be good, the creation of toll roads, because this is also related to our subsidiary, Adira Finance, which also launched quite good growth for motorcycle loans," he explained.

Previously, it was reported that Bank Danamon managed to record a net profit after the tax (NPAT) was consolidated of Rp. 831 billion during the first quarter of 2024.

In terms of funding, Danamon recorded a total increase in third party funds by 14 percent (yoy) to Rp143.2 trillion. Even though funding growth has shifted to the Futures Deposit in the midst of a higher interest rate situation, granular funding can grow by 12 percent (yoy).

In line with credit growth, Danamon continues to strive to maintain a healthy asset quality as reflected in several key indicators including the loan at risk (LAR) ratio (including the restructuring of COVID-19 which is still being relaxed) improved by 70 basis points (bps) to 12 percent.

The non-performing loan (NPL) coverage ratio managed to increase to 261.8 percent, from 254.2 percent in the previous year, and the gross NPL ratio also improved by 20 bps to 2.2 percent.