PT Bank Danamon Indonesia (BDMN) Q2 2024 earnings summary

Executive summary

• Achieved double-digit growth in lending and funding, with loans and trade finance up 14–15% and deposits up 15–19% year-over-year for H1 2024.

• All four business engines—Enterprise Banking, SME, Consumer Banking, and Adira Finance—drove growth.

• Net profit after tax (NPAT) reached Rp1.52 trillion for H1 2024, a slight decrease year-over-year.

• Strategic focus on ecosystem building, MUFG collaboration, and digital/process improvements.

• Synergy loan growth reached 48% year-over-year, now 14% of the total portfolio.

Financial highlights

• Total assets grew 14% year-over-year to Rp231.9 trillion as of June 2024.

• Net interest income rose to Rp7.8 trillion; non-interest income up 21% to Rp1.6 trillion.

• Operating income increased 8% to Rp9.4 trillion; PPOP up 10% to Rp4.3 trillion.

• Cost of credit increased 28% year-over-year, impacting operating profit.

• Gross NPL ratio improved to 2.2%, with NPL coverage at 263%.

Outlook and guidance

• Strategic direction for 2024–2026 targets double-digit growth, sustainable profitability, and group expansion.

• Adira expects flat new bookings for the year, targeting IDR 40–41 trillion, with single-digit loan growth.

• NPL for Adira expected to hover around 2% due to disciplined write-offs.

• NPL coverage targeted at 200–220% through 2025; credit cost projected at 2.5% for 2025, rising to 2.7–2.8% in 2026.

• Continued investment in digital platforms, branch transformation, and new business incubation.