PT Bank Danamon Indonesia (BDMN) investor relations material

Executive summary

• Achieved double-digit growth in lending (+12% YoY), funding (+14% YoY), and net profit after tax (+33% YoY) for 1H26, driven by asset growth, improved credit quality, and strategic focus on ecosystem development, digital transformation, and MUFG group collaboration.

• Automotive, regional, and Hajj/Umrah ecosystems showed strong momentum, with significant increases in loan disbursement and funding.

• Maintained robust capital structure and asset quality, with NPL ratio at 1.7% and NPL coverage at 282.4%.

• Consolidated financial statements for the six months ended 30 June 2026 reflect the adoption of PSAK 413, impacting sharia asset impairment calculations and resulting in restated prior period figures.

• Completed the acquisition of Home Credit Indonesia and the merger of Adira Finance with Mandala Finance, both accounted for using the pooling of interests method.

Financial highlights

• Total lending increased 12% YoY to IDR 230.1 trillion; total assets reached Rp301.3 trillion (+15% YoY); wholesale lending up 16%, retail lending up 6%.

• Net income for the six months ended 30 June 2026 was Rp2,670,123 million, up from Rp1,876,916 million for the same period in 2025.

• Net interest income grew 9% YoY to Rp10.6 trillion; operating income up 7% YoY to Rp12.6 trillion; PPOP up 13% YoY to Rp5.9 trillion.

• ROE increased to 9.7%; CAR remained strong at 22.3%.

• Asset quality improved: loan at risk down to 7.8%, cost of credit to 2.3%, gross NPL to 1.7%.

Outlook and guidance

• Optimistic profit outlook for 2026, with growth influenced by internal strategies and external macroeconomic factors.

• NIM expected to remain resilient but under pressure from elevated funding costs and competitive deposit pricing.

• Lending growth projected to remain robust, supported by government programs and ecosystem initiatives.

• Credit costs for Adira and consumer expected to rise slightly in the second half, but remain historically low.

• The group continues to focus on prudent risk management, capital adequacy, and compliance with regulatory requirements.