Danamon Announces First Half 2014 Financial Results

Total Loans Grew 13%; SME and Commercial Loans Rose 21%, while Corporate Loans Expanded 34%; Total Funding Grew 15%

PT Bank Danamon Indonesia, Tbk. ("Danamon") today announces a 13% loan growth to IDR 141 trillion in the first semester of 2014 compared to IDR 124 trillion in the same period a year ago. Danamon's consolidated net profit after tax (NPAT) reached IDR 1.489 trillion in the first semester of 2014, as net interest income rose to IDR 6.7 trillion in the first half of 2014. At the end of June 2014, regulatory loan to deposit ratio improved to 98.9% from 105.4% a year ago, while average loan to deposit ratio for the first half of 2014 stood at 93.8%.  

"The first half of the year was marked by slowdown in the domestic economy driven by lower export demand and current account deficit, while the currency showed little signs of improvement. In the banking industry, liquidity remained tight, offering a competitive operating environment. Amid such conditions, we managed to sustain our lending and funding growth at a healthy level," said Henry Ho, Danamon's President Director.

Danamon's loans to micro enterprises booked a 3% growth to IDR 20 trillion in the first semester of 2014 compared to the same period a year ago. Loans to small and medium enterprises (SME) grew by 16% to IDR 22.9 trillion, while loans to the commercial segment, increased by 28% in the first half of 2014 compared to last year to IDR 17.4 trillion. Meanwhile, loans to the corporate sector booked a 34% growth to IDR 16.6 trillion in the first half of 2014.  

In the first semester of 2014, automotive loans through Adira Finance booked a 7% growth compared to the first semester of 2013 to IDR 49 trillion. "The automotive sector has slightly recovered after adjusting to the impacts of the down payment regulations." said Vera Eve Lim, Chief Financial Officer and Director of Danamon. 

Danamon's loan growth in the first six months of 2014 was accompanied by improved quality of assets, with non-performing loans ratio standing at 2.1% at the end of first half 2014 compared to 2.4% a year ago.

Danamon posted a solid growth in its current account and savings account (CASA), which grew by 17% compared to the first half of 2013 to IDR 48.8 trillion. Specifically, current account increased 25% to IDR 19.5 trillion, and savings account increased 13% to IDR 29.3 trillion. This growth meant that CASA constituted 44% of Danamon's customer deposits, which amounted to a total of IDR 110.4 trillion. Time deposit increased by 20% to IDR 61.6 trillion. All in all, Danamon's total funding, which includes CASA, time deposit, and long term funding, grew by 15% compared to the first semester of last year to IDR 136.6 trillion.   

As of the end of June 2014, regulatory Loan-to-Deposit ratio (LDR) reached 98.9%, improving significantly from 105.4% in the first semester of 2013. In the first semester of 2014, Danamon's average LDR was at 93.8%. Danamon's consolidated Loan-to-Total Funding ratio stood at 91.4% at the end of June 2014 compared to 91.1% in the same period a year ago. Danamon's consolidated capital adequacy ratio (CAR) stood at 17.7%, while standalone CAR is at 17.8% at the end of June 2014. 


About Danamon:
PT Bank Danamon Indonesia, Tbk. ('Danamon') was established in 1956 and as of June 30, 2014 operates a network of more than 2,400, including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of June 30, 2014 Danamon provides its customers with close to 60,000 ATMs, including through its association with ATM Bersama and ALTO, in all 33 provinces in Indonesia. Danamon manages around IDR 185.4 trillion in assets as of June 2014.

Danamon was recently ranked second in the Annual Report Award 2012 held by the Financial Services Authority (OJK) and Bank Indonesia (BI) in the Private Financial Listed category. Danamon was also awarded the Top 10 Publicly Listed Company with the highest Good Corporate Governance (GCG) ASEAN Scorecard by Institute for Corporate Directorship (IICD). Danamon also received several awards from the Banking Service Excellence Monitor Survey 2014 as 5th Overall, 1st Best Teller, 1st Best ATM (Danamon Syariah), and 3rd Best Phone Handling (Danamon Syariah) from Infobank and Marketing Research Indonesia (MRI). Internationally, Danamon was included in the 2013 Forbes Global 2000, which is a list of the world's biggest public companies as compiled by Forbes Magazine.

Danamon is also the sole license holder of Manchester United cards in Indonesia, allowing the Bank to issue Manchester United ATM/Debit cards and credit cards.

PT Adira Dinamika Multi Finance Tbk (Adira Finance), the automotive financing subsidiary of Danamon, operates an extensive branch network in more than 260 cities in Indonesia. Danamon is also the majority owner of PT Asuransi Adira Dinamika (Adira Insurance), a general insurance company and PT Adira Quantum Multifinance (Adira Kredit), a durable goods financing company.

As of June 30, 2014, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.46% by JPMCB-Franklin Templeton Investment Funds and 26.17% by the public.

For further information regarding Danamon, please visit Danamon's corporate website at: www.danamon.co.id

distributed by