Danamon raise net profit IDR763 billion

PT Bank Danamon Indonesia Tbk (Danamon) announced a consolidated net profit after tax (NPAT) of IDR763 billion for first quarter of 2011, increasing 9% from IDR701 billion for the same period a year ago.

The profit upported by continuous growth in loans across business segments, particularly the micro, small and medium enterprises (UMKM).

At the end of first quarter 2011, Danamon’s loans reached IDR86,002 billion, increasing 33% compared to Rp 64,447 billion a year ago. Danamon’s micro, small and medium business, or UMKM, loans have grown 27% to IDR26,449 billion as of March 31, 2011, and contributed to around 31% of the Bank’s total loan portfolio.

Danamon’s corporate and commercial loans have grown 24% to IDR17,233 billion from IDR13,847 billion at the end of March 2010, driven by working capital loans and trade finance business which grew 26% to reach IDR5,989 billion and 93% to IDR3,395 billion, respectively, compared to a year earlier.

Heavy equipment financing through Asset-Based Finance (ABF) unit also achieved very strong growth, with a 52% increase from IDR2,137 billion at the end of March 2010 to IDR3,246 billion at the end of the quarter of 2011.

Gross NPL was 3.1% as of end of March 2011, versus 4.0% at the end of first quarter 2010. In the automotive financing segment, Danamon through Adira Finance registered a 60% growth year-on year.
Total outstanding receivables reached Rp32,744 billion as of March 31, 2011 from Rp 20,490 billion at the same period last year, driven by motorcycle financing which accounted for 67% of all Adira Finance’s financing.
Adira Insurance, Danamon’s general insurance subsidiary, also showed encouraging performance. Its underwriting results rose 21% to IDR95 billion from IDR78 billion as of March 31, 2010.

Meanwhile, on the funding side, Danamon’s third party funds grew 26% to reach IDR82,495 billion, Current Accounts grew 30% while Savings Accounts (CASA) grew by 35% year-on-year, reaching IDR9,788 billion and IDR20,988 billion, respectively.

In total, CASA increased by 33% to IDR30,776 billion from IDR23,091 billion at the end of March 2010, while time deposits increased by 22% to IDR51,720 billion from IDR42,488 billion in the end of first quarter last year. As such, as of March 31, 2011, Loan to Total Funding Ratio reached 85.2%, while Loan to Deposits (LDR) ratio levelled at 94.9%.

In the first quarter 2011, Danamon recorded an increase in net interest income of 9%, reaching IDR2,609 billion from IDR2,394 billion a year ago.

Danamon’s financial results was also attributable to non interest income, generated among others from credit related fees which includes trade finance, as well as insurance fees that in total grew by 22% to IDR844 billion in the first quarter of 2011.
Return on Average Asset (ROAA) reached 2.6% as of end of March 2011 while Return on Average Equity (ROAE) stood at 17.6%. At the end of first quarter 2011, Danamon’s Capital Adequacy Ratio (CAR) stood at 14.7% after incorporating operational risk, well above the minimum requirement of 8%.
In the year of 2011, Danamon plans to allocate capital expenditures of around Rp 1.3 trillion, mostly to accelerate its distribution network and technology expansion.

By the end of this year, Danamon will add more than 600 new branches across Indonesia, including the conventional, syariah, Danamon Simpan Pinjam and subsidiaries branches.