SME Loans rose 7%, CASA grew by 13%, CASA ratio reached 46%; Loans to Deposit ratio improved to 89.6%


Jakarta, 28 July 2015. PT Bank Danamon Indonesia, Tbk. ("Danamon") today announced a net profit after tax of IDR 1.25 trillion in the first semester of 2015.

"The challenging macroeconomic conditions in the first half of 2015 impacted our business, leading to lower demand for loans," said Danamon President Director Sng Seow Wah. "On the other hand, our deposits and funding continued to improve, ensuring ample liquidity."

Sng added that Danamon Group is currently focused on productivity improvements and lowering the cost of funding our loans. "We are also concentrating on our cross-selling efforts and investing in other growing business segments," he said.

Decline in overall loans
Loans to small and medium enterprises, retail and the sharia segments continued to grow but their gains were offset by declines in the loans in the micro, automotive and corporate segments, resulting in a decline in total loans by 3% to IDR 136.3 trillion from IDR 140.6 trillion during the same period last year.

Small and medium enterprises posted a 7% increase to IDR 21.6 trillion from IDR 20.1 trillion; loans to the retail segments, including housing and unsecured loans as well as credit cards, grew by 16% to IDR 11.4 trillion from IDR 9.8 trillion; loans to the sharia segment booked a 46% growth to IDR 2.8 trillion compared to IDR 1.9 trillion.

Loans to the commercial banking segment remained flat at IDR 14.9 trillion compared to the same period last year.

Loans to the micro enterprises segment through Danamon Simpan Pinjam (DSP), was recorded at IDR 17.4 trillion, a 15% decline compared to IDR 20.4 trillion recorded a year ago. Loans to the automotive sector and white goods financing, through Adira Finance, declined by 4% to IDR 48.6 trillion from IDR 50.8 trillion a year ago. Loans to the corporate banking segment stood at IDR 17.7 trillion, down 5% from last year.

Improvement in funding
Current and Savings Accounts (CASA) balances grew by 13% to IDR 55.2 trillion from IDR 48.8 trillion a year ago. Danamon posted solid growth of 20% in its Current Account balances to IDR 23.4 trillion, while Savings Accounts balances increased by 8% to IDR 31.8 trillion. Danamon's CASA composition improved to 46% of Danamon's total customer deposits compared to 44% a year ago. Time deposits increased by 7% to IDR 65.9 trillion. Danamon's total funding, which includes CASA, time deposit, and long term funding, grew by 8% to IDR 147.4 trillion. The growth in CASA ratio resulted in an improvement in cost of funds (COF) to 6.2% compared to 6.3% in the same period last year.

Asset quality remains solid
Gross non-performing loans increased slightly to 2.9% from 2.1% a year ago, but this remained well below the regulatory limit of 5%," said Vera Eve Lim, Chief Financial Officer and Director of Danamon, adding that the bank is constantly aiming at improving its asset quality through strict enforcement of risk assessment procedures, disciplined collection and recovery of debts.

Healthy loan-to-deposit ratio
Danamon continues to maintain a liquid balance sheet with a healthy regulatory loan-to-deposit ratio (LDR) of 89.6%, improving from 98.9% a year ago. Danamon's consolidated loan-to-total funding (LTF) ratio stood at 83.4%. compared to 91.4% in the same period a year ago.

Danamon's consolidated capital adequacy ratio (CAR) stood at 18.5%, while standalone CAR was at 19.6%. "With sound balance sheet, supported by strong capital as well as ample liquidity, Danamon is well positioned to pursue future growth," Sng said.

Recent developments
Danamon recently launched E-Commerce Payment Service, an online shopping payment service where Danamon Online Banking users can pay their online shopping in selected online merchants using funds from their Danamon accounts.

Danamon also launched "Bisa Umrah" saving product, a savings account product designed for customers who plan to perform Umrah pilgrimage. The "Bisa Umrah" savings account allows depositors to set aside funds for Umrah and is equipped with life insurance.

Recent awards received by Danamon include Finance Asia's "Asia's Best Company 2015 - Best Managed Company (Indonesia, ranked 8th)" and "Customer Satisfaction Award 2014 - Consumer Bank of the Year" by Roy Morgan.

About Danamon:
PT Bank Danamon Indonesia, Tbk. ('Danamon') was established in 1956 and as of June 30, 2015 operates a network of 2,074 including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of June 30, 2015, Danamon provides its customers with close to 66,000 ATMs, including through its association with ATM Bersama and ALTO, in all 34 provinces in Indonesia. Danamon manages around IDR 200 trillion in assets as of June 2015.

Danamon was recently awarded as 1st Winner of the Annual Report Award (ARA) 2013 in the Private Financial Listed category, which was issued by Bank Indonesia, the Financial Services Authority (OJK), the Indonesian Stock Exchange (IDX), the Tax Directorate General, the Ministry of State Owned Enterprises, the National Committee for Governance Policy, and the Indonesian Accountant Association. Danamon also recently received the Customer Satisfaction Award 2014 - Consumer Bank of the Year by Roy Morgan. Internationally, Danamon was awarded as Asia's Best Company 2015 - Best Managed Company (Indonesia, ranked 8th) by Finance Asia.

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, 2015, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.83% by JPMCB-Franklin Templeton Investment Funds and 25.80% by the Public.

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


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