PT Bank Danamon Indonesia (BDMN) Q4 2025 earnings summary

Executive summary

• Domestic economic momentum is expected to strengthen in 2026, driven by investment recovery, fiscal expansion, and ample liquidity.

• Achieved double-digit growth in lending and funding, with sustainable profitability supported by asset growth, improved credit quality, and risk-adjusted margin expansion.

• Strategic focus on ecosystem development (automotive, education, Hajj/Umrah), digital transformation, and regional empowerment.

• Merger of Adira Finance and Mandala Finance completed in October 2025, consolidating group operations and enhancing market presence.

• Consolidated net income for 2025 reached Rp4,194,237 million, up from Rp3,695,004 million in 2024, reflecting strong operational performance and improved asset quality.

Financial highlights

• Total assets grew to Rp275.7 trillion as of 31 December 2025, up 11% year-on-year; total lending up 9% to Rp212.7 trillion; total funding increased 13% to Rp196.2 trillion.

• Net profit after tax (NPAT) grew 14% year-on-year to Rp3.97 trillion, supported by a 5% increase in operating income and improved asset quality.

• Net interest income rose to Rp17,923,754 million in 2025 from Rp17,155,920 million in 2024; non-interest income up 10%.

• Operating profit and NPAT up 27% and 21% year-on-year, respectively, to IDR 3.9 trillion.

• Cost of credit declined 10% year-on-year, reflecting better asset quality.

Outlook and guidance

• Loan growth for 2026 projected in line with regulator targets, driven by wholesale, EBFI, SME, retail, and Adira Finance.

• Lending growth expected to remain robust, supported by stable macroeconomic conditions and lower interest rates.

• Non-interest income growth to align with group strategy and cross-selling; recovery from non-performing loans expected to decline as portfolio quality improves.

• The group continues to focus on sustainable growth, maintaining strong capital and liquidity positions to support business expansion.

• The bank plans further capital market activities, including new bond and sukuk issuances in early 2026.