Jakarta, 3 March 2016. PT Bank Danamon Indonesia, Tbk. ('Danamon') today announced its full year 2015 financial results.

'In 2015, we took steps to improve our productivity, which produced some meaningful result and will help us improve our earnings for 2016 and beyond,' said Sng Seow Wah, President Director of Danamon.

Seow Wah added that there are many opportunities for Danamon to grow through its wide distribution channels across Indonesia. The Bank is focused on strengthening its franchise, services and human capital in order to remain one of the key players in commercial, SME, retail and mass market customer segments. 'The objective of these initiatives is to provide better services to our customers, making our products and services more accessible and reliable,' he said.

2015 performance reflects efficient operations
Danamon recorded a net profit after tax (NPAT) of IDR 2.4 trillion in 2015. Pre-Provision Operating Profit (PPOP) grew by 8% compared to the previous year to IDR 8.4 trillion. Danamon recorded an improved cost-to-income ratio of 51.7% in 2015 compared to 55.7% in the previous year. Operating costs decreased by 8% to IDR 9.0 trillion in 2015 compared to the previous year. In terms of quarter-to-quarter improvements, fee income recorded a 12% increase in the fourth quarter of 2015 compared to the third quarter.

Growth in SME and Sharia loans; flat growth for commercial and corporate banking loans
In 2015, loans to the small and medium enterprises (SME) segment grew by 5% to IDR 22.4 trillion from IDR 21.3 trillion. Sharia loans, which include loans to the SME and commercial segments, grew by 27% to IDR 2.9 trillion from IDR 2.3 trillion. Loans to the corporate banking segment and commercial banking segment were recorded at IDR 17.7 trillion and IDR 16.0 trillion, respectively.

Micro segment loans, through Danamon Simpan Pinjam (DSP), was recorded at IDR 14.6 trillion, a 23% decline compared to IDR 19.0 trillion recorded in 2014.

Consequently, Danamon's total loans declined by 7% to IDR 129.4 trillion in 2015 from IDR 139.1 trillion in the previous year.

Adira Finance's performance
National sales for two wheeled and four wheeled vehicles in 2015 declined by 18% and 16%, respectively*. Consequently, Adira Finance's loans decreased by 9%. Adira Finance ended the year with loans to the automotive sector and white goods financing at IDR 46.6 trillion.

CASA and time deposits
In 2015, Danamon's Current and Savings Accounts (CASA) balances decreased by 15% to IDR 49.8 trillion from IDR 58.3 trillion in the previous year. Time deposits increased by 12% to IDR 67.0 trillion. However, the cost of funding improved as the momentum for gathering low cost CASA deposits improved.

Asset quality remained below regulatory limit
'Gross non-performing loans stood at 3.0%, which remained below the regulatory limit of 5%,' said Vera Eve Lim, Chief Financial Officer and Director of Danamon. She added that the Bank is constantly aiming at improving its asset quality through prudent enforcement of risk assessment procedures, disciplined collection and recovery of debts.

Healthy loan-to-funding ratio and capital
Danamon's regulatory loan-to-total funding ratio (LFR) stood at 87.5%. Danamon's LFR remained below Bank Indonesia's threshold, which is set at 94%.

Danamon's consolidated capital adequacy ratio (CAR) stood at 19.7%, while standalone CAR was at 20.8%.

Recent Developments
Recent awards received by Danamon is one of 50 Best Publicly Listed Companies in Southeast Asia and one of 3 Best Publicly Listed Companies in Indonesia in Good Corporate Governance in the ASEAN Corporate Governance Award 2015 organized by ASEAN Capital Market Forum (ACMF). Danamon also awarded as 'Best Overall' in the 7th Indonesian Institute for Corporate Directorship (IIICD) Corporate Governance Conference and Award 2015. The Bank also received first runner up in the Financial Services Category of Sustainability Report Awards 2015 organized by the National Center for Sustainability Reporting (NCSR).

*Sources: Indonesian Motorcycles Industry Association (AISI) and Indonesia Automotive Industry Association (Gaikindo).

About Danamon:
PT Bank Danamon Indonesia, Tbk. ('Danamon') was established in 1956 and as of December 31, 2015 operates a network of 1,901 including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of December 31, 2015, Danamon provides its customers with more than 60,000 ATMs, including through its association with ATM Bersama and ALTO, in all 34 provinces in Indonesia. Danamon manages around IDR 188 trillion in assets as of 31 December 2015.

Danamon is also the sole license holder of Manchester United cards in Indonesia, and the issuer of 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.

A s of December 31, 2015, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.81% by JPMCB-Franklin Templeton Investment Funds and 25.82% by the Public.
For further information regarding Danamon, please visit Danamon's corporate website at: www.danamon.co.id.

PT Bank Danamon Indonesia Tbk issued this content on 03 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 March 2016 11:02:03 UTC

Original Document: http://www.danamon.co.id/Home/AboutDanamon/News/tabid/351/mid/971/newsid971/1021/language/en-US/Default.aspx