PT Bank Danamon Indonesia (BDMN) Q4 2024 earnings summary

Executive summary

• Achieved 8% year-on-year loan growth and 9% year-on-year funding growth, with total assets up 10% year-on-year to Rp242.3 trillion, driven by all business lines except Adira Finance.

• NPAT reached Rp3.29 trillion in 2024, down 9% year-on-year due to higher OPEX and credit costs, while pre-provision operating profit rose 1% year-on-year to Rp8.3 trillion.

• Strategic focus on ecosystem-based growth, digital transformation, and leveraging MUFG group synergies, with continued investment in digital and branch network enhancements.

• Consolidated financial statements audited by Deloitte present a true and fair view as of 31 December 2024, with an unqualified audit opinion.

• The Board of Directors confirms responsibility for the preparation, presentation, and internal controls of the financial statements.

Financial highlights

• Operating income grew 4% year-on-year to Rp18.9 trillion; OPEX increased 6% due to investments in IT, digital, and branch networks.

• Net interest income rose to Rp15.60 trillion, non-interest income grew 11% year-on-year, and cost of credit increased to Rp4.49 trillion.

• NPL gross improved to 1.9% from 2.2% last year; NPL coverage ratio increased to 287%.

• CASA ratio declined to 41.7% as funding shifted to time deposits amid higher rates.

• Basic earnings per share for 2024 was Rp325.30, compared to Rp358.51 in 2023.

Outlook and guidance

• Loan and trade finance growth for 2025 projected at 9%-11%, in line with regulator targets, supported by all business segments.

• Deposit growth expected in the lower double digits to support lending; Adira Finance targets 8%-10% new financing growth in 2025.

• ROE guidance for 2025 is about 7.6%, with a medium-term target of 7.7%-8.5%; CAR to be maintained at current strong levels (26%).

• Strategic direction targets double-digit growth in lending and funding through 2026, with continued focus on ecosystem expansion and digital innovation.

• The Board expects the group to continue as a going concern, with adequate resources for future operations.