PT Bank Danamon Indonesia (BDMN) Q2 2025 earnings summary

Executive summary

• Achieved 6% year-on-year loan and trade finance growth, with wholesale lending up 13% and retail lending down 2% due to a weaker automotive sector.

• Net profit after tax (NPAT) rose 12% year-on-year to IDR 1.6 trillion, supported by improved non-interest income and lower credit costs.

• Total comprehensive income reached Rp1,947,739 million, compared to Rp1,331,346 million in the prior year.

• Asset quality improved, with loan at risk down to 9.1% and gross NPL ratio improving from 2.2% to 1.8%.

• Strategic focus remains on ecosystem dominance, leveraging MUFG partnership, digital banking enhancements, and process improvement.

Financial highlights

• Total assets grew 8% year-on-year to IDR 251.5 trillion, mainly from loan and trade finance growth.

• Net interest income for H1 2025 was Rp4,532,402 million, up from Rp4,377,735 million year-over-year.

• Pre-provision operating profit (PPOP) declined 4% year-on-year to Rp4.1 trillion due to higher cost of funds and operating expenses.

• Third-party deposits increased 10% year-on-year to IDR 160.1 trillion, with granular funding up 2%.

• Adira Finance new financing dropped 19% year-on-year, reflecting a weak auto industry.

Outlook and guidance

• Management expects continued cautious loan growth, with banking segments (corporate, SME, consumer) driving expansion as auto sector remains soft.

• Focus remains on sustainable profitability, digital transformation, and leveraging group synergies for growth.

• Credit costs are expected to stabilize at current levels, with no further significant declines anticipated.

• The company continues to focus on maintaining strong capital adequacy and liquidity ratios.