Danamon Announces First Quarter 2015 Financial Results

LDR Improved to 92.7%; CASA Growth 15% yoy; CAR 18.8%; NPAT at IDR 687 Billion

PT Bank Danamon Indonesia, Tbk. ("Danamon") today announces its first quarter 2015 financial results, showing an improved regulatory Loan to Deposit Ratio (LDR) to 92.7% compared to 94.1% last year. Current and savings accounts (CASA) growth was 15%, raising its CASA ratio from 42% in the first quarter of last year to 46% in the first quarter of this year. Total loans stood at IDR 135.7 trillion and consolidated net profit after tax (NPAT) was IDR 687 billion, while Danamon's consolidated Capital Adequacy Ratio (CAR) stood at 18.8%. "Moreover, Danamon's capital is at a sufficient level to meet Basel III requirements, while a healthy loan-to-deposit ratio ensures that the bank has a solid foundation for future growth," said Sng Seow Wah, Danamon's President Director.

Danamon's loans to micro enterprises through Danamon Simpan Pinjam (DSP) were at IDR 18.2 trillion as of the end of March 2015, while loans to small and medium enterprises (SME) were at IDR 21 trillion, as Danamon's market share in the SME sector improved from 6.1% in March 2014 to 6.6% in March 2015. All in all, total loans to micro, small and medium enterprises (MSME) segment constituted 29% of Danamon's total loans. Meanwhile, loans to the commercial segment increased 11% compared to last year, amounting IDR 15 trillion by the end of March 2015, while loans to the corporate segment were at IDR 16.4 trillion. In March 2015, Danamon's trade finance recorded a 24% growth compared to the previous year to IDR 24 trillion.

In first quarter of 2015, Danamon's automotive loans through Adira Finance stood at IDR 48.2 trillion, this growth was in line with the lower industry demand. Adira Insurance's Gross Written Premium (GWP) was IDR 433 billion, driven by non automotive insurance that rose 11% to IDR 162 billion, where active policies rose by 12% to 8.9 million.

In terms of asset quality, gross non-performing loans ratio remained at a manageable level of 2.5% by the end of March 2015, while cost-of-credit ratio stood at 3.3%.

"The drop of operating expenditure of 7% from last year shows Danamon's discipline in operational expenditure management and initiatives to increase productivity and efficiency. This includes realignment of branches and headcounts, which resulted in the improvement of the cost income ratio (CIR) of 1.9% from 55.2% to 53.3% in the first quarter this year," said Vera Eve Lim, Chief Financial Officer and Director, Danamon.

Danamon's current account and savings accounts (CASA) grew by 15% to IDR 54 trillion. Thus, CASA ratio rose to 46% in the first quarter of 2015 from 42% in previous year. Current accounts rose 22% to IDR 22.4 trillion, while saving accounts increased by 11% compared to last year from IDR 28.3 trillion to IDR 31.5 trillion in the first quarter of 2015 and time deposits were at IDR 62.6 trillion. Altogether, Danamon's total funding which includes CASA, time deposit, and long term funding, amounted to IDR 143.3 trillion at in the first quarter of 2015.

At the end of March 2015, Danamon's regulatory Loan-to-Deposit (LDR) ratio was 92.7%, improving from 94.1% at the end of March 2014. Danamon's consolidated Loan-to-Funding was 85.4% in March 2015, an improvement of 1.3% compared to 86.7% a year ago. Danamon's consolidated capital adequacy ratio (CAR) as of March 2015 stood at 18.8%, while standalone CAR was at 19.8%.


About Danamon:

PT Bank Danamon Indonesia, Tbk. ('Danamon') was established in 1956 and as of March 31, 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 March 31, 2015 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 193,8 trillion in assets as of March 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 was also awarded as 'Best Overall' in Corporate Governance during the 6th Corporate Governance Award, which was held by The Indonesian Institute for Corporate Directorship (IICD). In addition, Danamon was also awarded the Digital Brand of The Year Awards 2015, achieving 1st Rank in the Sharia Business Unit Category and 2nd Rank in the Savings Product, Sharia Business Unit Category held by Infobank Magazine and Isentia. Danamon also won the Reader's Favourite Website in the Banking Category during the Website Multinational Corporation Awards 2015 held by beritasatu.com.

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 March 31, 2015, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.82% by JPMCB-Franklin Templeton Investment Funds and 25.81% by the Public.

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

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