Bank Danamon net profit jumps by 61%<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Bank Danamon, the country's fifth largest bank in terms of
\nassets, announced on Wednesday that 2003 net profit jumped by 61
\npercent on strong revenue from lending and fee-based activities.<\/p>\n
In a report to the Jakarta Stock Exchange, the publicly listed
\nbank said that net profit increased to Rp 1.53 trillion (about
\nUS$182 million) last year from Rp 948 billion in 2002.<\/p>\n
It said that net interest income jumped by 47 percent during
\nthe year, while acknowledging that the bank was now \"less
\ndependent on interest income from government bonds.\"<\/p>\n
The bank said that shares of government bonds to interest
\nincome has declined to 31 percent from 51 percent.<\/p>\n
Danamon, which is 61.88 percent owned by a consortium of
\nTemasek Holdings and Deutsche Bank, said that loans grew steadily
\nduring the year and were more diversified among three major
\nsegments including the corporate sector, consumer, and small- and
\nmedium-sized enterprises.<\/p>\n
The bank's loan-to-deposit ratio increased to 57 percent last
\nyear from 52 percent in the previous year.<\/p>\n
Danamon also said that cost of funds decreased considerably,
\nimproving its net margin.<\/p>\n
The bank did not explain the reason for the lower cost of
\nfunds, but several analysts have said that the current declining
\ntrend in Bank Indonesia's benchmark interest rate has pushed
\ninterest rates for savings and deposits.<\/p>\n
The bank said operating income rose by 45 percent to Rp 3.53
\ntrillion, while fee income increased by 40 percent to Rp 980
\nbillion.<\/p>\n
It said that the strong profitability has improved its
\nfinancial ratios, pointing out that capital adequacy ratio (CAR)
\nincreased to 26.8 percent from 25.3 percent, while return on
\nequity and return on assets, respectively increased to 31.4
\npercent and 3.3 percent.<\/p>\n
But the bank acknowledged that its non-performing loan ratio
\nincreased to 6.8 percent from 4.4 percent, but was mainly
\nattributed to the purchase of unrestructured non-performing loans
\nfrom the Indonesian Bank Restructuring Agency (IBRA).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-danamon-net-profit-jumps-by-61-1447893297",
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