Bank Danamon 2010 Profit Jumps 88%

PT Bank Danamon Indonesia Tbk (BDMN), the country's sixth largest bank, today announced it booked consolidated net profit after tax of Rp2.88 trillion in 2010, increased 88% from Rp1.53 trillion in 2009.
The profit growth was mainly contributed by an increase in non-interest income in addition to loan growth in all customer segments, particularly micro, small and medium enterprises (UMKM).

“Indonesia’s macro economic condition in 2010 provided a positive operating environment for Danamon which enabled us to accelerate loan growth across all lines of businesses,” said Henry Ho, President Director of Danamon.

At the end of December 2010, Danamon’s loans reached Rp82.66 trillion, increasing 31% throughout the year from Rp63.28 trillion at the end of 2009.

Danamon’s micro, small and medium business loans have grown 24% year-on-year reaching Rp26.56 trillion and accounted for 32% of its total loans at the end of 2010.

Corporate and commercial loans have grown 21% to Rp16.27 trillion from Rp13.39 trillion in 2009, driven by trade finance business which grew 74% to Rp3.14 trillion from Rp1.81 trillion in the previous year.

Heavy equipment financing through Asset-Based Finance (ABF) unit also performed well, having grown 49% from Rp1.06 trillion at the end of 2009 to Rp1.58 trillion.

“Growth across our businesses in the past year was accompanied by a maintained quality of assets,” said Vera Eve Lim, Danamon’s Director and Chief Financial Officer. Danamon’s Gross NPL was 3.0% as of end of December 2010, down from 4.5% in 2009.

Indonesia’s automotive sector recorded significant growth in 2010 with motorcycle and car sales increasing 26% and 57%, respectively. In line with this, Danamon’s automotive financing through Adira Finance marked a 54% and 86% growth, respectively, in units of motorcycles and cars financed.

Adira Finance’s total outstanding receivables reached Rp30.68 trillion at the end of 2010, driven by motorcycle financing which accounted for 66.6% of all Adira Finance’s financing.

Danamon’s general insurance subsidiary, Adira Insurance, also grew significantly. Its gross premiums rose 34.3% to Rp1.08 trillion from Rp808 billion at the end of 2009.