Danamon Posts 35 Percent Net Profit Growth in First Quarter 2026

Photo: Dok. Danamon

JAKARTA - PT Bank Danamon Indonesia Tbk (Danamon, BEI: BDMN), a member of MUFG, a global financial services group, today announced its consolidated financial and operating results for the three months ended March 31, 2026 (1Q2026).

Danamon recorded a 35 percent net profit growth and 12 percent growth in operating income before provisions, compared to the same period in the previous year (year-on-year), after taking into account the impact of the implementation of PSAK 338. This profitability growth was supported by a 9 percent year-on-year growth in total consolidated credit and trade finance, as well as a 16 percent year-on-year growth in total consolidated deposits.

Nobuya Kawasaki, President Director of Danamon, explained that Danamon started 2026 with strong financial performance, recording growth in credit disbursement, fund collection, and profitability, while maintaining asset quality by prioritizing the principle of prudence.

"With the strategic direction to Grow Together as One Financial Group, Danamon is committed to remaining a provider of financial solutions that gain customer trust, and continue to contribute to the growth of the Indonesian economy," he said in a written statement, Thursday, April 30.

In terms of financial intermediation, as of March 31, 2026, Danamon recorded a total consolidated credit and trade finance of IDR 216.2 trillion, up 9 percent year-on-year. This growth was supported by credit growth of 11 percent in the Enterprise Banking & Financial Institution business line, 9 percent in the SME Banking business line, 7 percent in the Consumer Banking business line, and 5 percent in the Adira Finance business line.

On the fund-raising side, Danamon recorded a total of current accounts, savings accounts (current accounts and savings accounts or CASA) and consolidated deposits of IDR 176.1 trillion, growing 16 percent year-on-year.

In terms of profitability, throughout 1Q2026 Danamon recorded consolidated pre-provision operating profit (PPOP) of IDR 2.6 trillion, growing 12 percent year-on-year.

With an improvement of 13 percent year-on-year in the cost of credit, Danamon recorded consolidated operating profit of IDR 1.6 trillion. Consolidated net profit for the current period3 in 1Q2026 was IDR 1.1 trillion, up 35 percent compared to the previous year. In terms of profitability, Danamon recorded a net interest margin (net interest margin or NIM) of 7.6 percent.

The growth in the financial intermediation and profitability was achieved by maintaining asset quality. As of March 31, 2026, Danamon recorded a loan at risk ratio (LAR) of 8.2 percent, 2.4 percentage points better than the previous year. The gross NPL ratio at the same time was 1.6 percent, 30 basis points better than the previous year.

Danamon also recorded a NPL coverage ratio of 290.6 percent, an increase of 8.3 percentage points compared to the previous year.

Operational Performance Achievement 1Q2026

As Danamon continues to implement its strategic priorities, which include focusing on a number of priority business ecosystems, as well as investments to strengthen core capabilities in digital banking, branding, human resources, and branch transformation, Danamon recorded solid operational performance throughout 1Q2026.

In the automotive ecosystem, Danamon recorded a 36 percent year-on-year1 growth in the distribution of synergy loans (synergy loan) with Adira Finance. The growth in the automotive ecosystem is supported by a number of key initiatives, especially Danamon's support with Adira Finance and MUFG in the organization of the Indonesia International Motor Show (IIMS) Jakarta 2026 on 5-15 February 2026.

At the event, more than 580,000 IIMS Jakarta 2026 visitors had the opportunity to utilize various financial solutions from Danamon, including KPM Prima, a financing product from Danamon and Adira Finance. At IIMS Jakarta 2026, Danamon recorded a 9% year-on-year growth in transaction volume.

Danamon customers continue to utilize various digital banking solutions offered by Danamon which are available through D-Bank PRO and Danamon Cash Connect. D-Bank PRO, Danamon's digital banking application for retail customers, recorded a 31 percent year-on-year increase in the number of transactions, and a 39 percent year-on-year increase in transaction value.

Danamon continues to make a number of improvements to the D-Bank PRO application to increase customer convenience, including through new features such as an integrated onboarding experience for credit card customers, downloadable tax reporting features, and improvements to the interface and user experience (UI/UX). Danamon Cash Connect, Danamon's digital banking application for corporate customers, recorded a 24 percent year-on-year growth in user customers, as well as a 11 percent year-on-year growth in both the number of transactions and transaction value.

Danamon's network spread throughout Indonesia is supported by regional offices which are the center of Danamon's business activities in their respective regions. Throughout 1Q2026, Danamon held various customer engagement events through its branch offices. These events include, among others, the Mini Travel Fair held in Pekanbaru, Riau, market update seminars in Semarang, Central Java, and various major celebrations such as Chinese New Year and Lebaran.