Danamon's lending up by 78.6%<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Bank Danamon said that lending in the first half of this year
\njumped by 78.6 percent to Rp 23.72 trillion (US$2.89 billion).<\/p>\n
The bank said in a press statement distributed late on
\nWednesday that a huge chunk of the credit -- 63.8 percent -- went
\nto small- and medium-scale enterprises and consumer loans, while
\nthe remainder was in corporate and commercial loans.<\/p>\n
The higher lending increased the bank's loan-to-deposit ratio
\nto 66.2 percent in the first half ending June 30, compared to
\n37.7 percent in the same period last year.<\/p>\n
But Danamon said the credit expansion had caused its capital
\nadequacy ratio to fall to 24.2 percent from 32.7 percent, as the
\nbank had to set aside provisions for the loans.<\/p>\n
The publicly listed bank, which was acquired by Singapore's
\nTemasek Holdings and Deutsche Bank AG in May, said that net
\nprofit in the first half rose by 49.6 percent to Rp 615 billion
\non the backs of its higher net interest income and fee-based
\nincome.<\/p>\n
The rise in net interest income was due to a better interest
\nmargin, as the central bank had aggressively cut its benchmark
\nrate during the first half. Subsequently, the time deposit rate
\ndeclined, but the lending rate remained relatively high.<\/p>\n
Danamon also said that its non-performing loans (NPLs) fell to
\n2.8 percent from 4 percent, well below the central bank's 5
\npercent cut-off point for NPLs.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/danamons-lending-up-by-786-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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